Absolutely. The reality is that SAFEs are often used to price a company, even though the pricing conundrum is exactly what they are trying to solve! If you want the reveal on SAFEs, raise them uncapped (with a discount, of course!) and watch how many people tell you that they can't possibly do that. (Not everyone, though -- deeply appreciate those investors who are willing to invest on uncapped discounted SAFEs!)
What’s your rationale for uncapped SAFEs? I don’t think they are a good deal for investors.
I feel like this is not talked about enough. SAFEs are not the trouble-free investment vehicle that many people seem to think they are.
Would you explain what the issues are?
They don’t provide the same legal protections that being an equity holder provides. The valuation being settled later can also cause disagreements.