New Standard Deal

#1

Post by katm » Fri, Sep 28, 2018, 5:31 PM UTC

Re: New Standard Deal

#2

Post by hemantv » Fri, Sep 28, 2018, 5:39 PM UTC

YC Safes are great way to raise money for early stage startups. It allow them to focus on business which is most important during early stages.

This is right step in simplifying it even further.

Re: New Standard Deal

#3

Post by neom » Fri, Sep 28, 2018, 5:47 PM UTC

hemantv wrote: post #2

YC Safes are great way to raise money for early stage startups. It allow them to focus on business which is most important during early stages. This is right step in simplifying it even further.

We raised on safes, it was harder because some VCs don't like them as they've not really been litigated yet (or something) - but I tend to agree they're a great convertible security. Lets end this pre-money nightmare, cap table hell.

Re: New Standard Deal

#4

Post by marssaxman » Fri, Sep 28, 2018, 5:51 PM UTC

What is a "safe" exactly?

Re: New Standard Deal

#5

Post by [deleted] » Fri, Sep 28, 2018, 5:52 PM UTC

[deleted]

Re: New Standard Deal

#6

Post by apandhi » Fri, Sep 28, 2018, 5:55 PM UTC

marssaxman wrote: post #4

What is a "safe" exactly?

Essentially, it's a convertible note without the debt aspect.

Re: New Standard Deal

#7

Post by mwseibel » Fri, Sep 28, 2018, 5:55 PM UTC

marssaxman wrote: post #4

What is a "safe" exactly?

http://www.ycombinator.com/documents/

Re: New Standard Deal

#8

Post by bbrunner » Fri, Sep 28, 2018, 5:58 PM UTC

Great to see this happen again after the original "The New Deal" in 2014[0]. I'm a big believer in having enough capital to not have to worry about day-to-day costs so you can focus on actually running and growing your business, and this feels like a good sort-of "cost of living" increase.

[0] https://blog.ycombinator.com/the-new-deal/

Re: New Standard Deal

#9

Post by ai_ia » Fri, Sep 28, 2018, 5:59 PM UTC

mwseibel wrote: post #7

marssaxman wrote: post #4

What is a "safe" exactly?

http://www.ycombinator.com/documents/

Michael, do you know where can I find stats for the number of founders per company accepted in YC?

Edit: I found it here. https://blog.ycombinator.com/common-misconceptions-about-app...

Re: New Standard Deal

#10

Post by neom » Fri, Sep 28, 2018, 6:01 PM UTC

marssaxman wrote: post #4

What is a "safe" exactly?

Convertible notes are (usually) more like a loan that you (usually) pay back with equity instead of money. SAFE is less like a loan, so you avoid things like interest on the loan.