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GLOSSARY

MFN (Most Favored Nation)

Clause ensuring investor gets best terms offered to others.

How it works

If you offer better terms to a later investor (lower cap, higher discount), MFN holders automatically get those terms.

Why it matters

Protects early investors from being disadvantaged. Common in SAFEs.

Common pitfalls

Stacking multiple MFN SAFEs can get complex; not tracking which investors have MFN rights.

FAQs

Related terms

SAFEValuation cap
Repeat rateLiquidation preference