What if I told you I’ll lead your seed round but I want:
1- Full ratchet anti-dilution rights. If your next round is say at a 50% lower valuation, my share price gets lowered by 50%.
2- Anti-dilution against future options. If you if you increase the size of your ESOP, 100% of the dilution goes to founders and existing employees.
3- Anti-dilution against future notes. If you raise a pre-or post money SAFE or a convertible note, only the founders and employees get diluted, not me.
You’d tell me I’m crazy, right?
You’d at least tell me it’s not market, not standard?
But it is market, it is standard, and it’s called a post money SAFE.
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This post was originally shared by Pablo Srugo on Linkedin.