4 ms·
> It's a very bad idea for a startup to allow SAFE transfers, since you won't know who your investors are. What about taking a 5-10% commission on the transact
by mixeden 3y ago
> It's a very bad idea for a startup to allow SAFE transfers, since you won't know who your investors are.
What about taking a 5-10% commission on the transaction value if the SAFE is transferred? This would be an incentive to create transferable SAFEs, since you will make money every time someone sells them.
> It's a very bad idea for a startup to allow transferable SAFEs, since you won't know who your investors are. And it will turn into hell when you do a price round.
You could add a statement into SAFE that each party in the event of a SAFE transfer must send you a letter identifying the new party.
- nivertech 3y agoThe main advantages of YC SAFE are: 1. standardization (and thus simplicty and familiarity to investors) 2. no or low legal fees comparing to priced rounds 3. postponing negations about valuation 4. non-debt instrument unlike convertible notes (no interest accumulation and/or replayment triggers) Once you'll start customizing them, you will lose advantages ## 1 and 2. By allowing secondary trading in SAFEs you basically trying to recreate shares or tokens, and you will have to hire a very expensive securities lawyers, and even then it will not guarantee that you're not breaking the law (at least in US).