A decade ago (during the last real rhinoceros start-up boom), YC pioneered a new legal instrument called the "SAFE", and it was a much needed innovation. Unlike convertible debt notes which required more legal overhead and were never really intended to be "paid back" to early stage technology investors, the SAFE documents made it much simpler and faster for smart entrepreneurs to close investors and find a
"happy" balance of speed and capital efficient dilution optimization. The "post-money" SAFE revisions made further improvements to the documents, making it clearer and more predictable for founders to know approximately how much equity dilution they were incurring *instead of kicking that can down the road to the next priced round and often being completely surprised to see huge sliced of P1E being carried away by investors who turned out to be "NO-OPs" or simply dead weight to carry into the future. In partnership with www.CapTableCoalition.com and building upon the inspirational work of Alejandro Querrero , we are proud to support the Diversity Rider as an addendum to the term sheets for the companies we support, with the partners we trust, and for the benefit of society. Contact us to learn more!
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