Ask AI
Log In Sign Up
Go to Venture Deals
Previous Question Next Question
1
Venture Deals
conversion vent series A dilution post money safe

Does a post money SAFE got diluted with the Series A?

Asked by:
Community Member
1
0
Mar 14, 2024
I would like to know the step-by-step process.

Scenario:

I invested in the pre-seed round via a post-money SAFE of $100k at a $1M post-money CAP valuation. The startup reached Series A and raised $5M at a 50M valuation.

How much company participation do I owe after the Serires A transaction is closed? 10%?

Do I have the same preferred stocks that the company issued for the Series A investor(s)?
1 answer
0
Mike Suprovici
Accepted Answer
May 04, 2024
There are a lot of factors at play here. For example, if the company raised an additional SAFE after your investment, the dilution scenario will be different. It also depends on the terms of the Series A. Consider using this Cap Table and Waterfall tool to runs some scenarios: https://foresight.is/cap-table/
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 17

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 17
Related Questions
What is the Approximate Value of Markup in a $3M Seed Raise with a $15M Cap/20% Discount SAFE? 1 May 03, 2023 Will the ESOP 10% issuance dilute my conversion at the pre-money during the next financing round? 0 May 03, 2023 Which is better: Investing $100k in a $6M pre-money or $6.1M post-money SAFE? 1 May 03, 2023 Should I Include Fund Name and Investment Amount in SAFE Template Before Fund Formation and Final Evaluation? 1 May 03, 2023 FAST Agreement and Advisory Shares 1 Nov 10, 2024