Y Combinator’s safes spread – L.A. accelerator is now issuing them

http://venturebeat.com/2014/01/07/y-combinators-safe-notes-spread-l-a-accelerator-now-issuing-them-too-exclusive/

by nehalm • 13 years ago

58 15 13 years ago

venturebeat.com

codezero3• 13 years ago

Is there anywhere that discusses/describes SAFE and its benefits/trade-offs in detail?

minimax2• 13 years ago

This looks like a pretty good place to start:

http://ycombinator.com/safe/

codezero3• 13 years ago

Great, thanks!

jacobheller• 13 years ago

My startup, Casetext (YC S13), has the full text of the SAFE annotated by lawyers, investors, and founders: https://casetext.com/contract/simple-agreement-for-future-eq...

codezero3• 13 years ago

This is great, thanks!

gus_massa• 13 years ago

Discussion of the original announcement: https://news.ycombinator.com/item?id=6862461 (487 points, 33 days ago, 117 comments). In particular read the first comment, from user grellas. (He is a lawyer.)

timdorr• 13 years ago

I know of at least one Atlanta-based accelerator that is using them too. They seem to be fairly sound and better than other financial docs.

durkie• 13 years ago

is that flashpoint?

minimax2• 13 years ago

Is "SAFE note" a valid way of referring to a SAFE security? If it's not a debt instrument, it seems weird to call it a "note." It almost sounds more like an equity option (i.e. investors are buying the right to buy a certain amount of equity at a set price in the future).

aagha• 13 years ago

PG himself refers to them as "Safe Financing Documents": http://ycombinator.com/safe/

pg• 13 years ago

No, it's just called a "safe."

steeve• 13 years ago

Chiming in to say that SAFE has been "ported" to France thanks to the awesome folks at TheFamily, it's called AIR: http://www.meetair.co/

rhc2104• 13 years ago

I have a question about the SAFE.

SAFE holders don't seem to have the right to veto dividends. Shouldn't they have that right? What stops a company from issuing SAFEs, making a big dividend, and letting the company's shell fold?

ChuckMcM• 13 years ago

This is pretty neat, the whole concept of 'open legal' is fascinating to me. For years it seems Lawyer's were like machinists of old, carrying around their own special sauce of document [1]. Now quality, vetted, legal documents are pretty straight forward to come by. This is pretty cool in my opinion.

[1] This was the root of a long running joke in Intolerable Cruelty referring to the 'Massey Prenup' -- http://www.imdb.com/title/tt0138524/

memossy• 13 years ago

What discounts are SAFEs going to be issued at? Assuming no caps yet?

Y Combinator’s safes spread – L.A. accelerator is now issuing them

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