Work out the shares and ownership a SAFE converts into given its cap, discount and the priced round.
A SAFE with both a cap and a discount converts on whichever is more favourable to the investor, which is the lower valuation. Ownership is then the investment divided by that conversion valuation. Founders often model SAFEs at the cap and are surprised when a modest round makes the discount bind instead, or when several SAFEs stack into far more dilution than expected.
SAFE Valuation
Conversion valuation = the lower of the valuation cap and the discounted round price
Conversion valuation = the lower of the valuation cap and the discounted round price A SAFE with both a cap and a discount converts on whichever is more favourable to the investor, which is the lower valuation. Ownership is then the investment divided by that conversion valuation.
Founders often model SAFEs at the cap and are surprised when a modest round makes the discount bind instead, or when several SAFEs stack into far more dilution than expected.
This calculator takes 4 inputs: SAFE investment, Valuation cap, Discount to the priced round, Pre-money valuation of the priced round. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.