YC's Carolynn Levy (inventor of the SAFE) and Kirsty Nathoo teach investor-school mechanics: instruments, rights, and what founders and angels each misunderstand about early-stage paperwork.
The SAFE explained by its actual author; settles arguments founders have with lawyers.
This video was created by Y Combinator and features Carolynn Levy, Kirsty Nathoo. We summarize and link with attribution; all rights belong to the creator.
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45 min
YC CFO Kirsty Nathoo explains SAFEs versus priced rounds with worked cap table examples, showing exactly how caps, discounts, and stacking SAFEs dilute founders.
26 min
YC partners share real investor horror stories from their founder days and from companies they've advised: exploding term sheets, tranched deals gone wrong, investors behaving badly after wiring, and how founders should protect themselves.
9 min
Dalton Caldwell and Michael Seibel break down rookie mistakes founders make around investor terms and incentives: what investors actually optimize for, misaligned terms to watch, and how naive founders get squeezed.