In a standard SAFE, investors will get the BETTER (NOT both) of the valuation OR the discount on the next priced round. Ex: Let's say that we are signing a SAFE that has a $100m post-money valuation cap and a 90% discount. Let's say the company raises a new round as an equity round at $200m post-money valuation. Here's how the conversion works. The SAFE converts at whichever is lower: . $100m post-money OR. 90%*$200m = $180m post-money valuation . So it converts at $100m. Now, let's say the equity round was actually at $50m post-money valuation. The SAFE would convert at whichever is lower:. $100m post-money OR. 90%*$50m = $45m. So it converts at $45m . Let's say the equity round was at a $105m post-money valuation. The SAFE would convert at whichever is lower:. $100m post-money OR. 90%*$105m = $94.5m . So it converts at $94.5m. Note how in this last example even though the priced round valuation was higher than the cap on the SAFE, it didn't convert at the cap of $100m. In converted at even less than that. . When in doubt, compute the discount and compare both cases to figure out how the SAFE converts. SAFE agreements