SAFE or convertible loan for a pre-seed round in the Baltics?
SAFEs, by a wide margin. Among CEE founders raising pre-seed who applied to BADideas in 2026 so far and named an instrument, 46% planned a SAFE and only 9% a convertible loan. Whether SAFEs get higher caps, the applications cannot yet say.
The figures
| Instrument applicants planned, 2026 (to date) | CEE pre-seed | Baltics, all stages |
|---|---|---|
| SAFE | 46% | 34% |
| Convertible loan | 9% | 14% |
| Equity round | 32% | 47% |
Where CEE founders raising pre-seed stated a valuation cap, the median was €4.6 million. In BADideas application data, too few founders state a cap for each instrument to compare SAFE caps with loan caps.
What is changing
| Baltic applicants planning | 2025 | 2026 (to date) |
|---|---|---|
| SAFE | 10% | 34% |
| Convertible loan | 15% | 14% |
Among Baltic applicants, SAFEs are up from 10% in 2025 and convertible loans about the same as in 2025.
What it means for you
- A SAFE is the default convertible now. It has no interest and no maturity date, which is why founders prefer it. Check it works under your country's company law first.
- A convertible loan still makes sense when an investor wants the protection of a loan, or when a local investor is used to one.
- Negotiate the cap, not the instrument. The cap sets your effective price.
Also answers
Is a SAFE or a convertible loan more common in the Baltics?
A SAFE: 34% of Baltic applicants in 2026 so far planned one, against 14% for a convertible loan.
Do SAFEs get higher valuation caps?
The applications cannot answer that yet: too few state a cap for each instrument. Across CEE founders raising pre-seed who stated a cap, the median was €4.6 million.
How we measured it
- Source: applications founders sent to BADideas in 2025 and 2026 to date. CEE means the company is in a Central or Eastern European country. Only applicants who name an instrument count. The stage is the founder's own label.
- Limits: these are founders who applied to one CEE pre-seed fund, so the sample leans towards companies that see themselves as a fit for it. A single quarter can swing, so read the change between years first. Caps are stated in few applications, so the cap figure is an indication.
- Read: 26 September 2026. Updated every quarter.
BADideas.fund, "SAFE or convertible loan for a pre-seed round in the Baltics?", founder application data read 26 September 2026. https://badideas.fund/answers/safe-or-convertible-loan-baltics
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