Post-Money SAFE
A SAFE where the valuation cap includes the SAFE itself, making dilution clearer for investors.
Definition
A post-money SAFE is the current standard SAFE (since 2018), where the valuation cap is defined on a post-money basis, meaning the cap already includes the money from this SAFE and all other SAFEs in the cap. This makes it easy for investors to calculate their exact ownership percentage: investment amount divided by the cap. However, it shifts uncertainty to founders, who bear all the dilution from multiple SAFEs.
Why it matters
With post-money SAFEs, each new SAFE dilutes founders and employees but NOT other SAFE investors. If the company raises $2M across multiple SAFEs at a $10M post-money cap, those SAFEs will own exactly 20%, and the extra dilution falls entirely on the existing shareholders.
Example
Investor A puts $1M into a post-money SAFE at a $10M cap (10% ownership). Investor B puts another $1M at the same cap (10%). Together they own 20%. Founders thought they owned 80% but after both SAFEs, they own 80% minus the option pool.