What does MFN mean in finance?

Most Favored Nations Provision
Most Favored Nations Provision (MFN) This term has several meanings. In the context of: Finance. Business jargon for the concept that the first party will be entitled to at least as favorable terms as a second party in specified circumstances.

What does MFN mean in contract?

Most favored nation clauses
Most favored nation clauses (MFNs), sometimes also referred to as most favored customer clauses, are agreements in which a supplier agrees to treat a particular customer no worse than all other customers (see Standard Clause, General Contract Clauses, Most Favored Customer (www.practicallaw.com/8-510-7389)).

What is MFN startup?

Most favored nation startups are new companies that have a most favored nation or MFN clause in agreements with investors. This clause keeps later investors from getting better terms than the first investors, and it’s completely different from the clause that involves countries.

What does MFN mean in production?

Most Favored Nations
However, one term that can crop up in any of these contracts is “Most Favored Nations,” or MFN. An MFN clause or rider can substantially effect what performers or other designated artists are paid, which is why both producers and artists need to understand the meaning of MFN. MFN clauses are not limited to actors.

What is a pre money SAFE?

Basically, it’s an agreement in which an investor gives you money for your company now, with the expectation that you’ll convert that amount of money into shares of stock later on. That means that SAFEs usually require much less paperwork and negotiation than issuing shares of stock right away.

How do MFN clauses work?

Most favoured nation (MFN) clauses link investment agreements by ensuring that parties to one treaty provide treatment no less favourable than the treatment they provide investors under other treaties. As a result, MFN clauses have become a significant instrument of economic liberalisation.

What does MFN mean in acting?

Film, television, performing arts, theater, gaming, webisode and other contracts that involve live or filmed performance differ in many ways. However, one term that can crop up in any of these contracts is “Most Favored Nations,” or MFN.

What is a most favored nations clause within the entertainment industry?

The “most favored nations” concept had its start not in entertainment agreements but in treaties governing international commerce. The clause would ensure that one country to a trade agreement received no worse treatment – concerning import duties, for example – than the treatment accorded another trading partner.