Free tool
SAFE calculator. See your dilution first.
Enter your SAFEs and, if you like, a future priced round. See roughly how much of the company your SAFE investors will own, what's left for founders, and how a round and option pool change it.
General information about Ontario and Canadian law, not legal advice or an opinion on your situation. Results depend on your facts and documents, so check with a lawyer before you act.
Questions
What does a post-money valuation cap mean?
On a post-money SAFE, the cap is the company’s value including the SAFE money. If the SAFE converts at the cap, the investor’s share is roughly their investment divided by the cap, so $250,000 on a $5,000,000 post-money cap is about 5%.
When does the discount apply instead of the cap?
A SAFE with both converts at whichever gives the investor the lower share price. If the round values the company low enough that the discounted price beats the cap, the discount applies.
Is this exactly what our cap table will show?
No. It’s an estimate using the standard post-money SAFE method. Your real numbers depend on the exact SAFE wording, other securities, how the option pool is defined and the round’s terms, so check the final cap table before you sign.
Do we need to file anything when we issue a SAFE?
Often, yes. A SAFE is a security, so it’s usually issued under a prospectus exemption, and some exemptions need a report filed with the securities regulator within 10 days.
Read next: How SAFEs work in CanadaSAFE round service
This tool gives general information and estimates about Ontario and Canadian law only, not legal, tax or financial advice. Results depend on the exact terms of your documents. Legal services are provided by lawyers licensed by the Law Society of Ontario. See our Terms of Use.