Tag Archives: MFN

The MFN Clause in SAFEs and Convertible Notes: How It Quietly Re-Prices Your Earlier Investors

mfn clauses in safe note and convertable agreement

TL;DR: A most favoured nation (MFN) clause in a SAFE or convertible note lets an earlier investor automatically claim the better terms you give a later investor. If you offer a lower valuation cap to close a strong investor down the line, the MFN clause can pull that lower cap back to your earlier investors […]