
What happens to previous Angel SAFEs at YC funding? - inderaj
So, I&#x27;m raising some angel money from friends and family using YC SAFEs - 5M, 20%.<p>Now, my understanding is that if we get a series A at 50M valuation as the next round, the angels will get a close to 10x bump. Also, one angel asked me about taxes and we told him that their conversion at Series A will not be taxable (and that will be their base price?)<p>Now, if YC funds us ($120k for 7%) in a couple of weeks, what happens to the angel investments? Is this a pricing round?
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inderaj
Thanks, but this is a question on how YC invests technically. If it invests
120K for 7% by setting a 1.7M valuation, my other 200K in safes will take 11%
equity (whereas I had issues them wanting to give 4% equity) This will ruin my
company.

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sharemywin
you should probably talk to a lawyer and an accountant. I'm not sure I read it
on a message board will hold up in court. ;)

