Re:SeedRamp
by OliverJones on Friday March 04, 2016 @02:42PM
(#11226363)
Beware beware. The investors in your next round WILL NOT LIKE THIS DEAL. Why? Their money doesn't go to building your business, it goes to paying off this SAFE.
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Re:SeedRamp
by hobbyjogger on Friday March 04, 2016 @02:56PM
(#11226459)
They might not like it (especially if there's a large effective discount), but that's not why.
If you raise a next round the SAFE never gets paid off - it converts into equity in the round. None of the equity investors' money is at risk of being used to pay off the SAFE.