Postmoney SAFE Shares

Solve one cap-only post-money SAFE share count before new-money financing dilution.

Description

A cap-only post-money SAFE defines a simple ownership fraction before new-money financing dilution.

A cap-only post-money SAFE defines a simple ownership fraction before new-money financing dilution. Converting that fraction to shares depends on all other fully diluted shares.1

Solve one cap-only post-money SAFE share count before new-money financing dilution.

When to use Postmoney SAFE Shares

Use this for the following task: Solve one cap-only post-money SAFE share count before new-money financing dilution.

Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.

How to use Postmoney SAFE Shares and understand its results

  1. Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
  2. Enter investment, postmoneyCap, otherFullyDilutedShares using the field table, then run the tool.
  3. Read safeOwnershipFraction, safeShares. Interpret flags, units, ordering and placeholder values using the rules below.
  4. Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.
Input fieldMeaningValue type and boundsRequirement
investmentInvestmentnumberRequired
postmoneyCapPostmoney capnumberRequired
otherFullyDilutedSharesOther fully diluted sharesnumberRequired

Require positive inputs and investment strictly below the cap. Solve the single-instrument share count and return its ownership fraction.2

ownership=investment/postmoneyCap; SAFE shares=otherShares ownership/(1−ownership)

This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.

Output fieldMeaningValue type
safeOwnershipFractionSafe ownership fractionnumber
safeSharesSafe sharesnumber
json
{
  "input": {
    "investment": 200,
    "postmoneyCap": 1000,
    "otherFullyDilutedShares": 800
  },
  "output": {
    "safeOwnershipFraction": 0.2,
    "safeShares": 200
  }
}

Limitations and assumptions

This is one cap-only scenario before new-money dilution. Other instruments, discounts and contract-specific capitalization are excluded.

These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.

Alternative or Complementary methods

Choose SAFE Cap Discount Comparison for this operation: Compare SAFE cap and discount conversion prices using supplied capitalization assumptions. For a complementary task, use Round Dilution Tracker for this operation: Track multiplicative ownership dilution across financing rounds.

Further background: SAFE financing documents and background.

References

  1. SAFE financing documents and background — Y Combinator

  2. Postmoney SAFE Shares — tool.io

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