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When you borrow $100k you repay the principal or $100k after your Demo Day fund raise and in lieu of interest we will receive a $20k uncapped MFN SAFE. In case
by rchachra 5y ago
When you borrow $100k you repay the principal or $100k after your Demo Day fund raise and in lieu of interest we will receive a $20k uncapped MFN SAFE. In case the startup fails to raise sufficient funds to make the repayment, then the entire principal will be converted in a SAFE at a pre-agreed cap.
- dustingetz 5y agoWhat is the repayment term, 3 months?
- rchachra 5y ago6 months is the standard Demo Day note but can be reduced to 3 months on a pro-rata basis.
- GordonS 5y agoSorry, what are "SAFE" and "MFN SAFE"?
- zachthewf 5y agoSafes are the most common way for startups to raise seed today. You can read about them here: https://www.ycombinator.com/documents/#about https://www.ycombinator.com/documents/#about