Round Mechanics

SAFE Conversion

How a post-money SAFE converts at the next priced round — valuation cap vs. discount, the conversion price, shares issued, and the investor's final ownership after the new money.

The SAFE

SAFE investment

Post-money cap

Discount

The priced round it converts into

Round pre-money

New money

Pre-round shares

SAFE ownership

4.04%

after the new round

Converts on

the cap

price $1.06/sh

Cap-based price $1.0556

Discount price (20% off)$1.7778

Conversion price (lower of the two)$1.0556

SAFE shares issued473,684

Ownership before the new money5.00%

Effective pre-money for the SAFE$10.00M

A post-money SAFE (the YC standard) locks the holder's ownership at investment ÷ cap before the new round dilutes everyone. The SAFE converts at the lower of the cap-implied price and the discounted round price — whichever is cheaper for the investor.

For modeling and illustration only — not investment, legal, or tax advice. Conventions vary by fund; verify against your governing documents.