[AlbertCory]

There are already Socially Responsible Mutual Funds with none of this "accredited investor" stuff. Why would you throw your money away on this? You have no idea whatsoever about what they're going to do with it, except some vague high-sounding words. More to the point, you don't know what % of the ultimate profits, if there are any, will flow to the backers and not to you.

[asah]

Multi decade angel investor here: accredited investor requirements are completely normal, including the good faith clause.

[AlbertCory]

You gave it away there: "angel investor .. accredited investor requirements" You're in a different ballgame.

The other responders here are wondering if someone can get into that ballgame without all the safeguards you went through.

[mmastrac]

Also an angel investor. Nobody actually checks accredited investor status [1], but early stage investments are so risky you'll have to invest $X x Y investments at an amount so large it's difficult for most people to do safely.

[1] Angellist did actually check for this, though it only required screenshots of account balances.

[stu2b50]

I mean this is a terrible investment no matter what. 3% interest that, let's be honest, there's serious doubt as to whether you'll actually see? From an investment standpoint it's the lowest of junk bonds without a particularly high interest rate either.

There's a million things with both better upside and safety.

[mmastrac]

Nobody invests in convertible notes for the interest. YC's SAFE is basically a note sans interest. Investors looking for high interest rates on notes should be a red flag to startups as well.

[toadroad]

There's no valuation cap on this note (until a >50M round happens). It is a variation of the standard YC deal, but on some of the worst terms for an investor.(there's no pro rata, preferred liquidation either).

The only benefit for this early investment is the 8% discount. It doesn't feel like a fair trade for the added risk of investing earlier.

All that said, it's nice to be able to have the outside possibility of future return for a donation that supports their mission.