SAFEs were INVENTED by YC. Look into SAFEs. https://youtu.be/Dk6JNTDec9I. Kirsty Nathoo - CFO of Y Combinator. A safe is a single standardized form that does not leave a lot of room open for negotiation and makes it easier to raise initial capital. Know your cap table. CapTable.io. Simple agreement for future equity. Convertible security. Receive money now, issue stock later. Minimal negotiations. Not debt. Very simple, not a lot of legal jargon. Post money: after all the safes. Pre-money valuation + money raised = post-money valuation. Amount raised / post-money valuation cap = ownership. Different flavors of SAFES. Discount. Uncapped. Uncapped with a “most favored nation“ call. If an investor gets a better valuation down the line, then the original investor gets those terms. Restricted stock purchase agreement. A safe is a promise to give shares in the future. Safes do not dilute earlier investors in the safes. Options pool: Employee incentive plan. Founders, options issues, options available. Post-money option pool (equity set aside for more early hires). Priced round. Safes convert. (15% of our total diluted shares, both common and preferred). Options pool in increased. New investors invest. (“Safes are included in pre-money“). If the priced round is lower than the valuation cap on the SAFE, then the SAFE will convert at the same price as the Series A investors. Price per share = Valuation / Capitalization. Capitalization = Total fully diluted shares after safe conversion and option pool increase. Number of shares = investment amount / price per share. Fundraising is a means to an end. I am getting really frustrated by the math.