[middleout]

I'm not a fan of YC (I find it elitist, and imo they crowd out the 99.5% of startups that get rejected), but I can't find fault with the SAFE as an instrument.

To the extent that founders suffer too much dilution while raising via a SAFE, it's more likely the case that there was something not working with the business.

Sure, if the founders could have raised a priced equity round from the get-go, they probably should have done that over a SAFE, but more likely the legal expenses would have been too onerous for that to have been an option...