I think someone said it becomes debt. Not ideal for YC but not fraud either. | Hacker News

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		donnythecroc on Jan 11, 2022 \| parent \| context \| favorite \| on: YC’s $500k Standard Deal I think someone said it becomes debt. Not ideal for YC but not fraud either.

r97teran on Jan 12, 2022 [–]

the instrument is a SAFE, which does not convert into debt. rather its just a promise for equity in the future

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