7 ms·

I posed the exact question here and got the non-answer that an unconverted SAFE is just debt, but it's not just debt. My understanding is that the valuation is

I posed the exact question here and got the non-answer that an unconverted SAFE is just debt, but it's not just debt. My understanding is that the valuation is not meaningful on an uncapped SAFE where there's no subsequent round. So 7% equity is what they have regardless of a $5M valuation as determined by... who?

jeff18 5y ago
My understanding is that YC would get 7% ($350k) and would also receive $375k from this new SAFE. So YC would have put in $500k and gotten $675k back.