SAFE Quick Cards
Recall the core SAFE terms and the practical questions they answer.
What does SAFE force you to check before signing? SAFE Valuation cap versus discount in a SAFE Some SAFEs have one, both, or neither, so read the actual document. Why do multiple SAFEs create dilution surprises? Each SAFE can represent an ownership claim at conversion, so several small raises can stack into a large pre-priced-round dilution load. Model the whole SAFE stack, not each instrument alone. Objection: 'We will figure out SAFE dilution during the priced round.' We will figure out SAFE dilution during the priced round. Advisor line Let's model the SAFE stack now so the priced round does…
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