Most Favored Nation (MFN)
The most favored nations clause (MFN) protects early investors by giving them access to the same rights benefits received by later investors, if those rights and benefits are more favorable. MFN rights are typically relevant when an investors uses a SAFE or convertible note and wants to protect their access to a favorable valuation cap, discount, or interest rate given to future investors.
This type of advanced right is typically only granted to larger investors (dictated by an ownership percentage). If these rights are granted, they will be granted to the SPV rather than the individual investors who own a stake in the SPV.