1/ appreciate the simplicity, but this is going to get founders in trouble, and it runs counter to finance/economics. As you raise money, your valuation goes up. Here, as you point out, the more money the founders raise, the lower the price per share (i.e. they are penalized).
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2/ This primarily simplifies things for the investor who should already be familiar with the economics of convertible instruments. Good point about the increase in equity plan only diluting founders, but if that was the issue you can exclude that from the pre-money cap.
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That’s amazing thank you.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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What’s a safe?
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nvm, found it: http://www.ycombinator.com/documents/
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