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A comment on Y Combinator narrows current cohort size by 40%, citing downturn and funding. Parent comment

Re:Y Combinator narrows current cohort size by 40%, citing d... by solarmist on Tuesday August 02, 2022 @10:50PM (#32327080)
It’s $500k now.
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Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Wednesday August 03, 2022 @01:25AM (#32327959)
No, it’s still 125k for 7%, with an option for an additional 375k on an uncapped safe.

Source: https://www.ycombinator.com/deal/

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Re:Y Combinator narrows current cohort size by 40%, citing d... by dstick on Wednesday August 03, 2022 @02:19AM (#32328254)
True but from a practical standpoint they risk a full $500.000 upfront:

“Both investments happen at the same time; they are not contingent on any milestones.”

So from a founder perspective, that’s very friendly.

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Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Wednesday August 03, 2022 @04:15AM (#32328993)
That is true, but the comment I was replying to was implying that you get 500k at 7%, which is wrong.
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Re:Y Combinator narrows current cohort size by 40%, citing d... by ec109685 on Wednesday August 03, 2022 @02:19AM (#32328257)
If you ever finance again you have to take the note, right?
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Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Wednesday August 03, 2022 @06:53AM (#32330027)
That’s actually a good question, the language isn’t clear on whether the 325k note is mandatory or not.
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Re:Y Combinator narrows current cohort size by 40%, citing d... by supernova87a on Wednesday August 03, 2022 @02:17AM (#32328244)
What is a "safe"? I have never heard that term in this usage before.
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Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Wednesday August 03, 2022 @04:14AM (#32328989)
Simple Agreement for Future Equity: https://www.ycombinator.com/documents
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Re:Y Combinator narrows current cohort size by 40%, citing d... by solarmist on Wednesday August 03, 2022 @03:04PM (#32335573)
"You are technically correct, the best kind of correct."
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Re:Y Combinator narrows current cohort size by 40%, citing d... by yunohn on Saturday August 06, 2022 @12:04PM (#32369235)
But it’s not 500k for 7%, it’s 125k. This makes a massive difference in the implied valuation, it’s not just a technicality.
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