Just wanted to comment on this tidbit: "However, if by some miracle they raised above the cap, the investors would get the same % they initially agreed to, but

Just wanted to comment on this tidbit: "However, if by some miracle they raised above the cap, the investors would get the same % they initially agreed to, but would also get higher liquidation preference." This isn't necessarily true. If I recall correctly, the default language in Clerky's notes or the YC Safe provides mechanisms for getting around this, either by (a) issuing a different class of stock to noteholders with a different liquidation preference (e.g. Series A vs. A-1 shares) or (b) issuing the extra shares resulting from a discount or cap in common rather than preferred.