Work Through SAFE Conversion
Estimate ownership sold through a post-money SAFE with a valuation cap.
A founder needs to estimate how much ownership a $1 million post-money SAFE at a $10 million valuation cap has sold. Post-money SAFE ownership signal: SAFE investment divided by post-money valuation cap, before later dilution The common trap is saying a SAFE has no dilution because shares are issued later. The share issuance is delayed, but the economic ownership signal can already be modeled, and several SAFEs can stack into meaningful dilution before a priced round. Identify investment SAFE investment equals $1 million. Use the actual cash amount committed under this SAFE. Identify post-money cap Post-money valuation cap equals $10…
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