4 ms·

SAFEs have also caused so many issues. They’re often poorly priced and can lead to legal issues or frustrations.

• pge 2y ago
  I feel like this is not talked about enough. SAFEs are not the trouble-free investment vehicle that many people seem to think they are.
  • trogdor 2y ago
    Would you explain what the issues are?
    • bix6 1y ago
      They don’t provide the same legal protections that being an equity holder provides. The valuation being settled later can also cause disagreements.
• bcantrill 2y ago
  Absolutely. The reality is that SAFEs are often used to price a company, even though the pricing conundrum is exactly what they are trying to solve! If you want the reveal on SAFEs, raise them uncapped (with a discount, of course!) and watch how many people tell you that they can't possibly do that. (Not everyone, though -- deeply appreciate those investors who are willing to invest on uncapped discounted SAFEs!)
  • bix6 2y ago
    What’s your rationale for uncapped SAFEs? I don’t think they are a good deal for investors.