# Most favored nation clause

> Most favored nation clause — A promise that an investor's terms improve to match better terms the company gives a later investor. YC's MFN SAFE has no cap or discount and takes those of any SAFE issued later.

Source: https://lopifi.com/glossary/most-favored-nation-clause
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is most favored nation clause?** In accounting, most favored nation clause means a promise that an investor's terms improve to match better terms the company gives a later investor. YC's MFN SAFE has no cap or discount and takes those of any SAFE issued later.

## Also known as

- MFN

## Words this system refuses for it

- pro rata right
- side letter

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** safe