SAFEs (and convertible notes) are also good for pre-equity round employees because companies can grant them shares instead of options. People who own shares outright are much better off tax-wise than people with options.
You are right, though, employees are better off when they understand conversion mechanics. And when they don't work for dillholes that mislead them with complexity.
You can grant employees shares regardless of how you raise outside capital. Whether or not you do so is a decision of the company leadership, not a result of how you raise money.
You are right, though, employees are better off when they understand conversion mechanics. And when they don't work for dillholes that mislead them with complexity.