Did You Know? · Corporate & Commercial Contracts
Do you know a "pre-money" and "post-money" SAFE can produce very different dilution outcomes for the same cheque?
A post-money SAFE fixes the investor's ownership after the round; a pre-money SAFE does not, and founders can be diluted far more than the headline cap suggests.
A post-money SAFE fixes the investor's ownership percentage after accounting for other SAFEs and the round itself, while a pre-money SAFE does not - meaning founders using post-money SAFEs can face materially more dilution than the headline valuation cap suggests, especially when multiple SAFEs stack before a priced round.