Why are startups raising pre/seed rounds of $2M+ with notes/SAFEs? That's not what they were intended for...
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Carolynn Levy created the SAFE. It was not designed for YC to use. It was simply meant to be a better convertible note. She is also the main person who switched SV to notes. The reason she did that was so that startups could do rolling closes.
YC for its part does a priced round. If you stop to think about it, it has to, since it invests a fixed amount of money for a fixed amount of stock.
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They changed from pre-money to post-money SAFEs, but SAFEs still used for post-YC seed fundraise, and it’s even more the norm now for $2mm+ in SAFEs (YC companies each batch continue to raise at higher valuations, as YC’s track record gets better and better)
End of conversation
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