You accept money from several investors via SAFE agreements. Fundraising with SAFEs: Everything you need to know.Before diving in, it may be helpful to build some foundational knowledge by reading the below articles: In order to understand why this is important, you’ll need to know the high-level ways that pre-money SAFEs and post-money SAFEs differ. That’s why we think it’s smart to reverse the order of this discussion-talk with your investors about pre-money and post-money first, and then discuss other details like valuation caps and conversion discounts. Unfortunately, making decisions in this order can have a real impact on your equity ownership percentage and dilution over time. When negotiating with investors, they focus on details like valuation caps and conversion discounts first, and then let their investors decide whether the SAFE is going to be pre-money or post-money. Here at Carta, one of the biggest mistakes we hear early-stage founders say they make is assuming that pre-money and post-money SAFEs are interchangeable.

The most common mistake founders make with SAFEs

What is safe money