Just playing around in the 'Model SAFEs' tool, and seem to be having trouble with an existing SAFE with Most Favored Nation terms. Now if I understand MFN correctly, if the next SAFE is issued with better terms (for example a better Discount Rate) then those terms should apply to the MFN SAFE as well. However the modeling tool doesn't seem to be doing this.
Shown here is an example. The 'First Safe Round Investors' have a discount of 25%, which can be seen in the share price, but the share price of the original investor is not impacted. And because this is an actual investment already logged in the system, there is no way to manually edit it in the modelling tool.
And I've confirmed that Carta considers it an MFN SAFE in the system
Since this impacts the scenario modelling, it feels like I need to get this solved otherwise any forecasts it produces are incorrect.
Any thoughts? Am I misunderstanding anything here?
Appreciate the help!
Carta's modeling tools are limited. Your best bet is to model it outside of the software. Sometimes (if you get a good analyst with your help ticket) you can ask them to put what you need in Sandbox, but it will expire after a limited amount time.
If helpful, I work with my startup clients' models on Finmark - that might work per Jennifer's answer.
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