The SAFE (Simple Agreement for Future Equity) is YC's standard pre-seed instrument. Key terms:
- Cap: max valuation at conversion. Lower cap = more dilution at next round.
- Discount: % off the next round price (typically 20%).
- MFN: most-favored-nation; you'll get the best terms given to later SAFE investors.
No interest. No maturity date. No board seat. Founder-friendly. Use the post-money YC version.
Next action
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