@rexsalisbury
@toptal
This is why every SAFE ever done by an institutional VC now has side letters providing protection from this stuff
Results in same legal cost
And it’s up to founders if they extend that to all the smaller checks
Idk why this isn’t universally understood 10 years later
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SAFEs have a flaw.
if company never raises equity, note never converts, you never get the equity!
this happened w/
@toptal
. and investor "got" 10% for $1M via a note that never converted. Toptal is now worth ~$1B. investor have ~$100M reasons to be upset and is suing.
This…
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