
Safe Financing Documents - _pius
http://ycombinator.com/safe/
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tptacek
Neato. Is this new? Are there any companies that have financed using SAFEs?

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mathattack
As mentioned in another thread, I like this. Instruments that look like debt
(terms and interest rates) generally are the instruments of lower risk
investors. Linking them to equity is the game of wall street arb desks.
Turning the instrument into a warrant is more in lines with high stage early
equity investing - giving folks an option on a potentially large upside.

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andrewljohnson
I would have used these a few years ago, and would in the future. This is now
my convertible notes worked out so far, in practice - we offered to pay them
back, or let them continue indefinitely, after they expired.

They were written as classic notes, for just friends and family, but we
haven't raised yet. We dealt with the expiration in a non-official way, via
email - basically like a SAFE, but still accruing interest. If my investors
weren't as close as they are, or if it would have been more money, this might
have been an expensive issue to deal with.

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twanlass
Not starting your new company with 250k in debt sounds great. It will be
interesting to see how fast this takes off.

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joshu
Er, this doesn't make a lot of sense. Personal debt and corporate debt are not
the same thing.

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gojomo
Even without formal interest, some incremental benefit over time, if a funding
takes longer to convert than expected, seems justified.

Has anyone considered a gradually _decreasing_ cap as a way to simulate the
time-varying rewards usually delivered via interest? (That is, decay-the-cap
rather than grow-the-principal.)

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beachstartup
after reading these documents, sounds like a safe is basically a refundable
security deposit.

