SAFE Calculator

We provide a simple SAFE calculator which helps investors or advisors think about scenarios.

The calculator evaluates the effective ownership of a SAFE investor, based on a theoretical new financing round. This requires making some assumptions about new financing rounds which can be extremely complicated:

Inputs

Valuation Cap (post Money): This is the maximum implied valuation of the company that SAFE holders will convert into, regardless of the new round details. Essentially this serves to specify a lower price per share in successful outcomes

SAFE Purchase Amount This is the amount of capital invested in the SAFE by an investor

Total SAFE Raise: This is the total amount of dollars invested by all SAFE holders with the same terms. 

Company Capitalization: This is the number of fully diluted shares issued and outstanding at the company.

Equity Raise Amount: How much new capital will be raised in the theoretical financing round

Equity Financing Valuation (Post Money): The total Valuation of the company, after taking into consideration all new money in the theoretical financing round

Post Money Option Pool: The size of the option pool after the new round available to the company to issue, represented as a percentage of the companies fully diluted capitalization.

Assumptions

1. Our calculator only resolves for post money SAFE's with no discount
2. The Percentage Ownership of new investors is fixed based on the ration of total new investment / post money valuation
3. All SAFE holders have the same economic terms
4. SAFE's convert and dilute the current shareholders and not new shareholders.