3 ms·

You would prefer a capped note if you think you'll raise at lower caps. If you think you'll raise at a $10m post-money cap then a SAFE with a $20m cap is better

by tyre 5y ago

You would prefer a capped note if you think you'll raise at lower caps. If you think you'll raise at a $10m post-money cap then a SAFE with a $20m cap is better than an MFN SAFE

gumby 5y ago
I don't understand. When would a company ever want a capped note? It only provides a benefit to an investor, at the company's expense.
- danr4 5y ago
  with MFN clause, it is capped to your next SAFE cap. YC probably expects most of the companies to raise a SAFE round after YC.