

Y Combinator’s safes spread – L.A. accelerator is now issuing them - nehalm
http://venturebeat.com/2014/01/07/y-combinators-safe-notes-spread-l-a-accelerator-now-issuing-them-too-exclusive/

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ChuckMcM
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/](http://www.imdb.com/title/tt0138524/)

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rhc2104
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?

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steeve
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/](http://www.meetair.co/)

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

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jacobheller
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...](https://casetext.com/contract/simple-agreement-
for-future-equity)

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codezero
This is great, thanks!

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minimax
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).

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aagha
PG himself refers to them as "Safe Financing Documents":
[http://ycombinator.com/safe/](http://ycombinator.com/safe/)

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timdorr
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.

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durkie
is that flashpoint?

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

