SAFE Note & Dilution Calculator
Model Y Combinator Post-Money SAFEs, valuation cap vs discount conversion prices, Series A equity rounds, and founder cap table dilution.
1. Convertible SAFE Note Parameters
2. Future Series A Priced Round Assumptions
Founders retain 79.83% of the company after converting the SAFE (4.2%) and issuing Series A preferred shares (15.97%).
Post-Money Valuation: $24,000,000 across 12,526,316 fully diluted shares.
How Valuation Caps and Discounts Convert in Venture Deals
When early-stage angel investors and venture capitalists fund a company using a convertible SAFE note, they postpone setting a fixed share price until a professional institutional lead prices the Series A round.
If the Series A pre-money valuation is higher than the cap (e.g. $20M Series A vs $10M Cap), the cap controls. The SAFE investor converts at the $10M cap, rewarding them for their early seed risk with 2x more shares per dollar than Series A buyers.
If the Series A valuation is below the cap (e.g. $8M Series A vs $10M Cap), the cap is ineffective. Instead, the 20% discount activates, letting the SAFE investor buy shares at $0.80 for every $1.00 of Series A share price.
Frequently Asked Questions About SAFE Notes
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