Deal Terms
Post-Money SAFE
A SAFE where the valuation cap is calculated on a post-money basis, giving investors more predictable ownership percentages.
A post-money SAFE (introduced by Y Combinator in 2018) sets the valuation cap on a post-money basis, meaning the cap represents the total company value after all SAFEs and the new financing are included — not just the pre-money value. This gives investors more predictable ownership: a $10M post-money cap means the investor's ownership percentage at conversion is [investment amount / cap] regardless of how many other SAFEs are issued at the same cap. This contrasts with pre-money SAFEs where issuing multiple SAFEs dilutes everyone (including earlier SAFE holders) before Series A. Post-money SAFEs became the YC standard in 2018. The tradeoff for founders: each SAFE at the same cap means more predictable — but potentially more — dilution.