4 ms·
The 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
by nivertech 3y ago
The 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).