A SAFE provision that lets an early investor adopt more favorable terms if the startup issues later SAFEs on better terms.
A SAFE provision that lets an early investor adopt more favorable terms if the startup issues later SAFEs on better terms.
The MFN clause protects early SAFE holders from being outmaneuvered by later investors who negotiate a lower cap or bigger discount. If the company issues a later SAFE with better terms, the MFN holder can elect to swap into those terms.
MFN is standard on the YC post-money SAFE. It rarely comes up in practice, but it exists so early investors don't need to reopen the SAFE every time you raise more.
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