Regardless of this, Y-Combinator is now a huge institution and some people will use post-SAFEs because of their marketing power (it`s possible that Y-Com now behaves more like investors and the new documents match their economic incentives). For those who want to understand what these structures are going to do with their cap table, I spent 5 days creating a resource for founders and investors to understand how the calculations work, so no one else had to go through the pain. While the vault may not be suitable for all funding situations, the conditions must be balanced, taking into account both the interests of the startup and investors. As with the original vault, there are still trade-offs between simplicity and completeness, so not all marginal cases are addressed, but we think the vault covers the most relevant and common issues. Both parties are encouraged to have their lawyers check the vault if they wish, but we believe it offers a starting point that can be used in most situations without change. We stick to this belief because we have seen hundreds of companies first-hand every year and helped them raise funds, as well as based on the thoughtful feedback we received from founders, investors, lawyers and accountants with whom we shared the first designs of the post-money vault. Our first vault was a “pre-money” vault, because at the time of its launch, startups raised small amounts of money before launching a cheap funding round (typically a round of Serie A preferred shares). The safe was an easy and quick way to get the first money in the business, and the concept was that safe owners were just early investors in this future price cycle. But fundraising at the beginning developed in the years following the launch of the original vault, and now startups are raising much larger sums of money than the first round of “Seed” funding. While safes are used for these seed towers, these cycles are really better regarded as totally separate financing rather than “bridges” in subsequent price cycles. There are four versions of the new post-money safe as well as an optional page letter. Whether you are using the safe for the first time or already have safes, we advise you to read our Safe User Guide (a substitute for the original Safe Primer). The Safe User Guide explains how the vault is converted, with sample calculations as well as other details about the proportional secondary letter, explanations of other technical changes to the new vault (e.g.B.

Language for tax treatment) and suggestions for the best use. “foreign exchange price” means: (1) the safe price or (2) the discount price, according to the calculation that leads to a greater number of shares of safe preferred shares. . . .