The early-stage fundraising instrument cheat-sheet
The instrument follows the entity and the border. This one page tells you when a SAFE, a CCD or CCPS, or a priced round is the right call, and what each means for FEMA. The full reasoning is in SAFE vs CCD vs priced round.
Read it top to bottom. The receiving entity decides your options; the rest is choosing the instrument and getting the filings right.
Start with the receiving entity
The company taking the money decides which instruments even exist.
- A US C-corp can take a SAFE. An Indian company cannot use a SAFE for foreign investment.
- An Indian Private Limited takes foreign or domestic money as a CCD or CCPS.
- Undecided on structure? Read Delaware vs UAE vs India first.
SAFE: fast US money, deferred valuation
Use when speed matters and you can defer the price.
- Best for a small US pre-seed or bridge into a C-corp.
- Valuation deferred via a cap and/or discount; cheap to paper.
- Do not use it for foreign investment into an Indian company. It is not a compliant FDI instrument.
CCD or CCPS: the FEMA-friendly convertible
The route for early money into an Indian company.
- Compulsorily convertible, so FEMA treats it as equity under the automatic route for most sectors.
- Conversion price or formula set upfront, within the pricing rules.
- CCPS carries preference rights; CCD is a debenture. Choose on the commercial terms.
Priced round: clean cap table, set valuation
Use when the cheque is large or ownership must be defined.
- Equity issued now at an agreed valuation; a settled cap table.
- Costs more: diligence, a shareholders' agreement, legal time.
- Often the cleanup when several SAFEs or CCDs are stacking up.
Get the FEMA position right
For money into an Indian company, the filings are not optional.
- Pricing at or above fair value, supported by a valuation.
- FC-GPR filed within the window after allotment; FLA annually.
- Full detail: FDI automatic vs approval route.
Model the cap table before you sign
Know what everyone owns after conversion, not after the round.
- Model conversion of every instrument at the next priced round.
- Check dilution against your ESOP pool; see ESOP pool sizing.
- Full reasoning: SAFE vs CCD vs priced round.
Pick the entity that receives the money before you pick the instrument. A SAFE, a CCD and a priced round are not interchangeable across a border. The famous instrument is not always the available one, and using the wrong one for foreign money into an Indian company means unwinding the round and doing it again.
Raising your first or next round?
Tell us which entity is taking the money and where your investors sit, and we will map the instrument, the FEMA position and the filings, before the round is on the wire.
Want this as a PDF in your inbox?
Email us and we will send the current version, and the updated one each time the law moves. Or print the page: it is built for paper.
This sheet is general information for founders, not legal, tax or financial advice for your specific raise. FEMA pricing rules, filing windows and instrument treatment change; confirm every point against current law before relying on it. Have the round structured before you sign a term sheet.
Prepared by Infinilex Consultancy · infinilex.io · Verified as of 3 July 2026. Printed copies date; check infinilex.io/resources/ for the current version.