mpenn

What’s the process for when a user gets a new phone? I dread getting one because my keys depending on the phone completely disappear and have no transfer mechanism.

Try contacting Tiny / Andrew Wilkinson; you may be able to sell it.

Would it work out of the box with a react native app?

Interesting. Anecdotally, I have seen the opposite, where a company will raise multiple layers of SAFEs since pre-money SAFEs get diluted as you add more SAFEs, and you don't need to negotiate board seats or any control terms with a SAFE round. But obviously you have seen the real data on what co's are doing, not just a few anecdotes!

My understanding is that additional post-money SAFEs dilute solely common, whereas additional pre-money SAFEs dilute common and other pre-money SAFEs. So if you want to do a new round, by doing an equity round, you can dilute the post-money SAFEs with common. But if you do a 2nd post-money SAFE round, solely common gets diluted.

Since keeping cap flat is logistically / emotionally easiest for both sides to swallow, the founder dilution is worse under a "flat" scenario. In the pre-money world, if you did pre-money $10mm cap and raised $2mm, then later another $2mm at same cap, common would own ~71% (10 / 14) on conversion (assuming A is high enough). In post-money world, if you do $12mm cap and raise $2mm (so equivalent to old world in 1st round), then later raise another $2mm with same cap, common would own 67% (8 / 12). That's just 4 - 5%, but a real difference.

So I believe the incentive is higher to do an equity round to convert the post-money SAFEs so they can be a part of the dilution of the new round. Unless I am mistunderstanding how they'd convert or something else here. The math is complicated (which I guess is the whole point of why moving to post-money will improve founders' understanding).

Overall, simplifying how to understand one's cap table is great. It gets in the way of many founders understanding their business in really pernicious ways.

I do believe this will change the dynamic for YC founders dramatically 1 - 3 years out if not ready for a Series A (equity round) but need more capital (seed extension). I know many people who raised $500K - $3mm more on SAFEs. Because they were pre-money, the dilution for stacking SAFEs worked. Now, that will be much harder. The next round of financing will need to be an equity round to convert SAFEs to equity. I don't know if this is good or bad, but it will push people very heavily towards an equity round if they need any more funding.

How do you use them? And what prices do you typically pay for the services you use?

Wolfram Research (Mathematica and Wolfram Alpha) - 700 employees, no outside capital.