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They mention that users can invest in them through SAFEs. This only makes sense if they plan an exit, either by selling or through an IPO, or am I missing somet
by BasilPH 4y ago
They mention that users can invest in them through SAFEs. This only makes sense if they plan an exit, either by selling or through an IPO, or am I missing something?
- simonbw 4y agoI think it implies that they intend to take VC money at some point in the future, like a series A, and they’re trying to avoid VC money now while they can get better terms. I don’t know if that necessarily means they plan an exit, or if they’d be happy just being profitable, but I do think it implies they plan to grow significantly. EDIT: Their website says that they don’t plan to take VC money, so I have no idea what a SAFE means in this case. The point of a SAFE is that the investor is guaranteed the best terms when a priced round of investment happens.
- freediver 4y agoOther options include going public or paying out dividends.
- lmeyerov 4y agoGoing public is a qualified event for a SAFE to convert -- it is a financing -- but curious about the dividends SAFEs are often capped, so taking awhile doesn't matter so much, except maybe interest calcs
- freediver 4y agoIf a company is doing sustainably well, supposedly you could have a mutually agreeable mechanism to convert SAFEs to equity (at cap for example) and treat shaleholders with dividends.
- wardedVibe 4y agoIs this some sort of hack towards a co-op? I couldn't find anything about it on their website