Gumroad raised $5M as a SAFE without ever needing to convert to shares

Never seen that before. Apparently it’s not all of the SAFEs but some(?) of the crowdfunded ones. Not illegal but definitely not acting in good faith.

This might cause them such a legal headache that VCs may think twice about investing in future rounds.

Might be in their interest to just update the language and convert the shares at the next round.