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Issuing SAFEs as a search fund CEO can misalign investor expectations and create complexity in ownership clarity. Unlike high-growth startups, search funds prioritize stable acquisitions and profitability over rapid fundraising, making traditional equity stakes a better fit for these investors. SAFEs, with their deferred conversion terms and uncertain ownership percentages, clash with search fund investors’ preference for clear, upfront equity allocations. Also, the typical growth trajectory and controlled financing strategy in search funds rarely provide the frequent funding events that SAFEs need to convert efficiently, leading to misaligned incentives and potential dilution concerns.