platosrepublic

I'm not a database expert, but this seems like something I should worry about, at least a bit. Is this a problem if you store all your persistent data in a database like MySQL?

Yeah, I've never heard a founder regret using a SAFE because of the confusion.

Mysteriously, the only people who oppose SAFE notes are investors who would like you to instead enter a complex negotiation with them!

Exactly. Pissing off an angel investor because some equity goes to the founder instead of the angel is bad for a VC, because that VC needs that angel to help funnel them deals in the future. But it's good for the founder, because the founder keeps more equity.

This is a very disingenuous argument by Fred Wilson, which is a shame because his analysis is usually so intelligent. But when it comes to convincing founders to give VCs more equity, he's driven by his own incentives just like any VC.

This totally misses how painful it is for a first-time founder to negotiate against an experienced VC. The power of the SAFE note is that you don't need to worry about the terms, you know it's acceptable. If there are twenty different possible funding mechanisms and you have to negotiate which one you want, the power goes to the VC. Just use a SAFE note.