Better questions build better companiesUS founders · Pre-seed to Series A
Direct questions

Can I compare two SAFE offers using only the valuation caps?

No. Compare amount raised, post-money SAFE structure, optional side letters, pro-rata rights, conversion triggers, ownership implications and existing SAFEs together; use a startup lawyer for interpretation.

Set up a cap-table model that shows each offer by itself and when stacked with earlier instruments. YC's US SAFE resources describe the difference between post-money and pre-money caps, and its own materials recommend seeking local legal advice. Investor status, side letters, board approvals and entity facts must be checked for the specific financing; a high headline cap can coexist with more restrictive terms. The SAFE — Y Combinator Startup securities building blocks — SEC

Sources cited on this page

  1. The SAFE — Y Combinator ↗www.ycombinator.com
  2. Startup securities building blocks — SEC ↗www.sec.gov
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