SAFE

“Oh, they're okay, but it's kind of like alcohol, and it should only be used in moderation.”

“I like them a lot. I think actually this is the new wave of investing.”

“I do. I think they're pretty much just as bad.”

“Safes, convertible debt, they're all kind of based on future guesses. You kind of figure out the dilution later. It allows for this continual raising process that, you know, I know YC's talked a lot about that I think can be a huge distraction.”

“So my ideal preference is to do a price round. My second preference is to do effectively a safe. My dislike is of the convertible debt. I think it's ultimately, it's a lose-lose for both sides when things don't go so well.”

“Debt was not a great model for this. It was sort of an accidental thing that were, that was used for bridge rounds, and it wasn't really meant for angel, for equity investing, and that's why we moved from convertible notes to safes.”

“Carolyn Levy at Y Combinator invented the safe or simple agreement for future equity”

“Definitely not for the seed. I would just raise the seed on all safes. For the A, try not to add to the board, and then maybe the B. Often you just don't have a choice. A lot of investors will require being on the board. There's kind of a luxury having the cho…”

“So as a pre-seed and seed investor the kind of B minus VC investors will want to get that next round on a priced basis to get that gap markup. But if you actually care about the economics and making money in the long term, you want the next round on a safe bec…”