Since the distinction between the pre-and post-money SAFE comes down to how the valuation cap and resulting price per share are calculated, this article mainly focuses on SAFEs which include a valuation cap (i.e. No valuation cap, no discount, but with a most favored nation provision.It is often asked whether they should use the pre-money or post-money SAFE.īoth versions of the SAFE come in a few different combinations namely: The changes introduced in the post-money SAFE had a significant impact on founders and investors. The document was present everywhere and to handle such expansion, a revised document named post-money SAFE was introduced. In 2013, when the SAFE agreement was introduced by Y Combinator, not many people expected it to become the de facto instrument for early-stage investing. Many founders might still find it difficult to understand the working of SAFEs when it particularly relates to pre-money and post-money SAFEs. There is less negotiation and paperwork involved than required in the issuance of shares directly. The investor gives you money under an agreement to invest that money for the company with the hope to convert that money into shares of stock. Why is it different, and what should you look out for?ĭuring the inception of the SAFE ( Simple Agreement for Future Equity), it was created with an intention to simplify or smoothen the process of early-stage fundraising of startups. Today, we’ll look at the differences in the POST-MONEY VALUATION variant. Since then, several new formats of the agreement have been published. Correction: A previous version misstated Viking Global's actions in the first quarter as a result of an incorrect quarterly comparison.It’s been ten years since Y-COMBINATOR introduced the SIMPLE AGREEMENT FOR FUTURE EQUITY (SAFE). Money managers who oversee more than $100 million in assets must disclose long positions to the Securities and Exchange Commission 45 days after the end of a quarter. That makes it possible that Halvorsen has already made changes to his holdings in the current quarter. Lululemon was the only new holding in the quarter to make the list of top 10 largest. Of Halvorsen's top 10 holdings, all were increased stakes in the quarter besides Amazon, which was cut almost 40%. Warren Buffett's Berkshire Hathaway decreased its position by about 20% in the last quarter. But Halvorsen's buy into McKesson, which is up almost 6% year to date, differed from some other big investors. A 46% increase to Halvorsen's McKesson stake put the stock in the number two slot among his biggest holdings, at $1.14 billion. The payment stock is up 11% this year, bucking a 7% decline in the S & P 500 Financials Index. Visa was Viking Global's top holding in the quarter, with a $1.48 billion position. Halvorsen zeroed out his prior holdings in stocks including Uber, Brookfield and RH. Elsewhere, the Norwegian hedge fund manager increased his holdings in tech, insurance and financial stocks such as UnitedHealth (up 66%), McKesson (up 46%), Fortinet (up 67%) and CSX (up 42%). Fellow hedge fund manager Dan Sundheim of DQ Capital Partners dumped his entire holding in Sherwin-Williams in the first quarter. Halvorsen also built a 2.25 million-share stake in paint maker Sherwin-Williams, valued at $506 million. The stock has rallied 16% this year, far outpacing the S & P 500. Halvorsen, whose firm has about $52 billion in assets under management, bought more than 1.9 million shares of yogawear maker Lululemon, valued at $690 million at the end of the first quarter. Personal Loans for 670 Credit Score or LowerĪndreas Halvorsen's Viking Global Investors took new positions in Lululemon Athletica and Sherwin-Williams in the first quarter, according to the hedge fund's latest 13F filing to the Securities and Exchange Commission. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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