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The biggest advantage of the post-money safe is that the amount of ownership sold is immediately transparent and ... safe.” In late 2013, Y Combinator introduced the original safe, or the Simple Agreement for Future Equity. At the time of introduction, startups and investors were primarily using convertible notes for early stage fundraising. ...

Y-Combinator released the new post-money SAFE in October 2018. It’s a large change to the original pre-money SAFE that was released in 2013. There is no calculator in Excel to actually illustrate the mechanics for the new SAFE so I made it. You can now use this calculator to see how dilutive raising SAFEs will be dependent on your series-A.

Tl;dr: SAFE cap and discount version of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple English.

“Post-Money” SAFES. To address those surprises and other changing market expectations, Y Combinator has continued to evolve the standard SAFE forms. The most significant change was the introduction in 2018 of the “post-money” valuation cap form.

Tl;dr: SAFE pro rata of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple English.

Y Combinator goes on to explain that because the new Safe is post-money, includes all of the converting securities, and the conversion formula is exclusive of the next round option pool increase, it makes calculating dilution easy. For example – $50k Safe on a $1M post-money valuation = 5% dilution.

The rationale, as explained by Y Combinator, is that under a Post-Money SAFE, calculating the ultimate ownership percentage sold to the investor is more straightforward, enhancing transparency for both investors and founders.10 This argument undoubtedly has its merits. In theory, under a Post-Money SAFE, the

News and discussion around Y Combinator and Y Combinator companies. In 2005, Y Combinator created a new model for funding early stage startups. Twice a year we invest a small amount of money in a large number of startups.

Y Combinator have been kind enough to make available templates for USA, Canada, Caymans and Singapore but, without one for Australia we tasked our lawyers with creating a true post-money valuation cap SAFE that is compliant with Australian law and mimics the original USA version of the agreement entirely as defined by Y Combinator here.

Y Combinator, one of the most famed Silicon Valley startup accelerators, introduced the “Simple Agreement for Future Equity” (commonly referred to as the “SAFE”) in late 2013. Recognized within the early investment community for its efficiency, the SAFE serves as a prominent tool for early-stage financing in startups. As its name suggests, the SAFE empowers

In this User Guide, the post-money safe is referred to as the “post-money safe,” “Standard Safe” or simply “safe.” The original version of the safe replaced by the post-money safe is referred to exclusively as the “original safe.” In late 2013, Y Combinator introduced the original safe, or the Simple Agreement for Future Equity ...

To address the current de facto usage of Safes, Y Combinator has provided updated “post-money” forms. The most significant change in the forms is that Safe holder ownership will now be measured after (post) all of the Safe money is counted, even if there are multiple closings, but still before (pre) the new money in the priced round that ...

However, when post-money SAFE is involved, it works differently in a way that founders are diluted by the SAFE investors but existing SAFE holders are not diluted. ... Founders willing to go under SAFE should understand the difference between Y Combinator’s pre-and post-money SAFEs before coming to the conclusion to use one with an investor ...

We invest $125,000 on a post-money safe in return for 7% of your company (the “$125k safe”) We invest $375,000 on an uncapped safe with a Most Favored Nation (“MFN”) provision (the “MFN safe”) ... The Y Combinator Standard Deal - $500k. About. What Happens at YC? Apply YC Interview Guide FAQ People YC Blog. Companies. Startup ...

In a post-money SAFE agreement, the calculation involves subtracting the investment amount from the valuation cap, signifying the company’s value following the investment. ... What is a YC SAFE? Y Combinator created the SAFE (Simple Agreement for Future Equity) agreement in 2013 as a straightforward way for investors to invest in a startup ...

Tl;dr: SAFE MFN (Most Favoured Nation) version of the Y-combinator post-money SAFE financing document explained line by line explanation. If you are planning on raising an angel/seed round with a new post-money SAFE you need to know what is in the legal agreement. You aren’t a lawyer, so I’m going to explain the whole document in simple ...

SAFE was introduced by Y Combinator in late 2013 to help early-stage startups raise capital more easily. ... 8% used just a discount, and 1% used neither. While the post-money SAFE was created to bring clarity to dilution, this data reveals a deeper shift—and some confusion—in how founders are structuring early-stage rounds. Uncapped SAFEs ...

Y Combinator CEO Garry Tan says for about a quarter of the current YC startups, 95% of the code was written by artificial intelligence models.

Y Combinator created a new model for funding early stage startups. ... SAFE. Resources. Startup School Newsletter For Investors Hacker News Bookface. Open main menu. ... Acquiring early customers, figuring out who to hire, closing deals with banks, raising money – YC's partners were closely involved and crucially helpful. " Patrick Collison ...