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    Why does Y Combinator invest with a Most Favored Nation clause?

    Y Combinator invests $125,000 on a post-money safe in return for 7% of your company (the “$125k safe”. Then they invest $375,000 on an uncapped safe with a Most Favored Nation (“MFN”) provision (the “MFN safe”). Why not just buy 10% equity for $500k, for example? 7% for $125K is a $1.8...
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