Most Favored Nation (MFN) Clause
The Most Favored Nation Clause gives early investors the same rights and benefits received by later investors, if those rights and benefits are more favorable than those originally agreed to. MFN clauses are typically included in SAFEs and Convertible notes. MFN clauses give investors peace of mind—they are assured that they will not be disadvantaged compared to other investors in subsequent rounds, thus maximizing their potential returns.