https://www.youtube.com/watch?v=Dk6JNTDec9I. It's the founder and CEO's responsibility to know the cap table and who owns how many shares. Use a spreadsheet to keep track of it. SAFE: Simple Agreement for Future Equity. Receive money now, issue stock later when you raise money at a priced round. Minimal negotiation: how much money the investor will put into the company and at what evaluation cap. No debt, no interest rate, no repayment. It addresses how the SAFE converts when you raise a priced round, if the company sells, and if the company closes down. SAFE investors are usually the earliest investors so they will actually receive more shares for their initial money because when you raise a priced round you will be at a higher post-money valuation. Priced rounds have a bunch of things to negotiate. Post-money SAFEs: amount raised / post-money valuation cap = ownership. $1m / $6m = 16.67%. Post-money SAFEs are encouraged. Restricted stock purchase agreement: founders buy the common stock shares. Later SAFE investors don't dilute earlier SAFE investors. SAFE investors are diluted by Series A investors and increasing the options pool. Priced round:. SAFEs convert (SAFEs are included in the pre-money). Calculates how many preferred shares the SAFE investors get. Option pool is increased. New investors invest. Price per share = pre-money valuation / capitalization. Capitalization = totally fully diluted shares after safe conversion and option pool increase. Number of shares = investment amount / price per share. Summary:. Use post-money SAFEs. Understand what you're selling. Don't over-optimize on caps. Take the money and use it to build the company