2 ms·
> For most companies, pre-seed SAFEs don't end up much above common. I'm not sure that is correct. AFAIK the modern YCombinator post-money SAFE [1] converts t
by robocat 2y ago
> For most companies, pre-seed SAFEs don't end up much above common.
I'm not sure that is correct.
AFAIK the modern YCombinator post-money SAFE [1] converts to the exact same share class as the VC investment round. The bookface document[2] says "when the company decides to sell shares of preferred stock in a priced round (an 'Equity Financing'), the outstanding safes will convert into shares of preferred stock" and also says elsewhere "then the safe holder will receive shares of Standard Preferred Stock".
I know nothing - so could be completely wrong!!! Complicated stuff LOL
[1] https://www.ycombinator.com/documents/ https://www.ycombinator.com/documents/
[2] https://bookface-static.ycombinator.com/assets/ycdc/Website%20User%20Guide%20Feb%202023%20-%20final-28acf9a3b938e643cc270b7da514194d5c271359be25b631b025605673fa9f95.pdf https://bookface-static.ycombinator.com/assets/ycdc/Website%...