Announcing the Safe, a Replacement for Convertible Notes
blog.ycombinator.com
Announcing the Safe, a Replacement for Convertible Notes
1–10 of 118 posts
Re: Announcing the Safe, a Replacement for Convertible Notes
#2[deleted]
Re: Announcing the Safe, a Replacement for Convertible Notes
#3Finally something sane
Re: Announcing the Safe, a Replacement for Convertible Notes
#4This is an example of one of the key things that sets YC apart from every other early stage investor. Like the startups they fund, they constantly improve their "product" to make something entrepreneurs want.
Re: Announcing the Safe, a Replacement for Convertible Notes
#5Will YC VC use these in the upcoming batch?
Re: Announcing the Safe, a Replacement for Convertible Notes
#6Will YC VC use these in the upcoming batch?
Yes, the YCVC investments this batch are going to be on safes instead of notes.
Re: Announcing the Safe, a Replacement for Convertible Notes
#7Q: What happens if the startup does well after the safe and doesn't need to raise any money and doesn't have a liquidity event? Are the safe investors stuck with a security which does not derive any economic (e.g., dividends) value and they don't have any control?
Re: Announcing the Safe, a Replacement for Convertible Notes
#8This is an example of one of the key things that sets YC apart from every other early stage investor. Like the startups they fund, they constantly improve their "product" to make something entrepreneurs want.
And share it with everyone.
Re: Announcing the Safe, a Replacement for Convertible Notes
#9So, based on the writeup, it's just an option? And this didn't exist already? It seems so obvious in retrospect it's surprising no one had thought to do this.
Is there anything special that makes this substantially different from a vanilla option, or is it just that a Safe is standardized in an easy to use way?
Re: Announcing the Safe, a Replacement for Convertible Notes
#10Q: What happens if the startup does well after the safe and doesn't need to raise any money and doesn't have a liquidity event? Are the safe investors stuck with a security which does not derive any economic (e.g., dividends) value and they don't have any control?
Convertible notes convert into equity (either at the holder's or issuer's option) on the QFE - a Qualifying Financing Event.
Often that also includes certain revenue threshholds and/or time limits.
Does the "safe" have provisions for this?