Most Favored Nation (MFN) is a clause in SAFEs and convertible notes that guarantees an investor will automatically receive any better terms offered to later investors in the same round. If you issue a subsequent SAFE with a lower valuation cap or higher discount, MFN holders can elect to adopt those improved terms. MFN protects early investors from being disadvantaged by later, more favorable deals.
If you offer better terms to a later investor (lower cap, higher discount), MFN holders automatically get those terms.
Protects early investors from being disadvantaged. Common in SAFEs.
Stacking multiple MFN SAFEs can get complex; not tracking which investors have MFN rights.
Looking for investors?
Browse 950+ European investors filtered by stage, sector, country, and check size.
Explore the investor directory