3 ms·
I used one to "paper" a small F&F pre-seed investment. Hard to comment on the outcome, because I haven't done a new round of funding yet which is when I would e
by rajacombinator 12y ago
I used one to "paper" a small F&F pre-seed investment. Hard to comment on the outcome, because I haven't done a new round of funding yet which is when I would expect to run into any problems. (I don't expect any.)
The upside was that it was easy to understand and I was able to edit it myself (copy / pasting additional parts such as MFN clause). So no lawyer fees.
SAFE makes way more sense than a convertible note for taking angel investments. The only downside I can think of is that if you are taking money from investors who are not F&F and who are outside Silicon Valley, you will probably have to explain it to them, and they will probably not understand it.
- api 12y agoI wonder if LA is too far from the Valley? Investors outside SV not getting it was one concern that came to mind.
- rajacombinator 12y agoIf they're the kind of investors that know what "YC" is then your chances are probably good. If they're the stodgy old-world type investors (most of non-SV) then it may be tough. I've read blog posts where such people were whining about not getting the interest on convertible notes, believe it or not!
- api 12y agoI would only take money from people who get at least the basics here. I wonder if a SAFE might have the added benefit of selecting for knowledgeable folks. If I try putting forward a SAFE I will blog the result.