[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.