Y Combinator’s post-money SAFE: investor ownership = SAFE amount ÷ valuation cap. Conversion price = min(cap price, discount price). On the priced round, SAFE holders get shares at the better of the two.
Effective conversion price (per share)
$0
Cap price / share
$0
Discount price / share
$0
SAFE → shares
0
Investor ownership (at cap)
0%
Effective valuation
$0
Which trigger wins
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Y Combinator post-money SAFE
Valuation cap: the maximum price the SAFE will convert at, regardless of the priced round’s valuation. Cap price = cap ÷ pre-round shares (post-money SAFE actually uses cap ÷ company capitalisation including the SAFE — simplified here).
Discount: a percent off the priced round’s share price (e.g., 20% discount on a $1 share = $0.80 conversion).
MFN (Most Favoured Nation): if a later SAFE has better terms, this SAFE’s terms upgrade. Not modelled here.
The investor gets shares at whichever method gives them more shares (i.e., the lower per-share price).