Hi there, it seems like YC now is moving towards a post money valuation on their safe so you can have a better idea on what percent ownership you have after you participate in a SAFE / convert note. A nice option in your note would be the ability to include the dilution of SAFEs and converts into the fully diluted shares or the ability to include all converts or SAFE's issued after your particular cvt note or SAFE. we have been running into issues where the company keeps issuing SAFES and convert notes and while the cap may say $10MM, by the time you add in extra dilution from say a $3.5MM convert issuance and a new 15% top up for the option pool, the cap is essentially much higher..
Hi there, it seems like YC now is moving towards a post money valuation on their safe so you can have a better idea on what percent ownership you have after you participate in a SAFE / convert note. A nice option in your note would be the ability to include the dilution of SAFEs and converts into the fully diluted shares or the ability to include all converts or SAFE's issued after your particular cvt note or SAFE. we have been running into issues where the company keeps issuing SAFES and convert notes and while the cap may say $10MM, by the time you add in extra dilution from say a $3.5MM convert issuance and a new 15% top up for the option pool, the cap is essentially much higher..