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No, it’s still 125k for 7%, with an option for an additional 375k on an uncapped safe. Source: https://www.ycombinator.com/deal/ https://www.ycombinator.com/de
by yunohn 4y ago
No, it’s still 125k for 7%, with an option for an additional 375k on an uncapped safe.
Source: https://www.ycombinator.com/deal/ https://www.ycombinator.com/deal/
- supernova87a 4y agoWhat is a "safe"? I have never heard that term in this usage before.
- yunohn 4y agoSimple Agreement for Future Equity: https://www.ycombinator.com/documents https://www.ycombinator.com/documents
- dstick 4y agoTrue but from a practical standpoint they risk a full $500.000 upfront: “Both investments happen at the same time; they are not contingent on any milestones.” So from a founder perspective, that’s very friendly.
- yunohn 4y agoThat is true, but the comment I was replying to was implying that you get 500k at 7%, which is wrong.
- ec109685 4y agoIf you ever finance again you have to take the note, right?
- yunohn 4y agoThat’s actually a good question, the language isn’t clear on whether the 325k note is mandatory or not.
- solarmist 4y ago"You are technically correct, the best kind of correct."
- yunohn 4y agoBut it’s not 500k for 7%, it’s 125k. This makes a massive difference in the implied valuation, it’s not just a technicality.