Post Money SAFE

This article describes the Post Money SAFE document and how you can access it on Savvi.

A Post-Money SAFE  is an agreement between an investor and a startup. The equity given to the investor is based on the value of the company after the investment of any converting investments (SAFEs or Convertible Notes). The standard Post-Money template was established by Y-Combinator and can be viewed on their site here.

For example, if a company was raising capital on a Post-Money SAFE with a $10M valuation cap, and an investor invested $1 million, that investor would get 10% of the company's equity upon conversion. That ownership would not be diluted if the company raised additional capital from investors on other post-money SAFEs (though it would be diluted by any financings that occur post-conversion, including the preferred stock round in which the SAFE converts). What this means is that the founders take dilution from additional SAFE investment, but not the SAFE holders themselves.

This is in contrast to a Pre-Money SAFE. You can compare Post-Money and Pre-Money SAFE in one of our other articles here.

You can access a workflow to generate Post-Money SAFE documents using the link below or by searching for the relevant keywords in the Workflows tab of your Savvi account.

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