[dankohn1]

The argument for a seed investor to invest in a SAFE note with no discount and no cap is that the Series A round will be priced by a VC or superangel, and the seed investor will not otherwise have the opportunity to invest at that later point. That is, the seed investor is trading the opportunity to participate in an investment at all for control over the exact terms. But since neither the entrepreneur nor the seed investor have any idea what a pre-revenue company is worth, they're often fine delaying the valuation question.