01
SAFE
A SAFE is a Simple Agreement for Future Equity. It generally gives an investor the contractual right to receive equity in a future financing or liquidity event under the agreement's terms.
02
Dilution
ownership percentage = shares owned / total shares outstanding
When new equity is issued, existing holders can own a smaller percentage even though the company's absolute enterprise value may increase.
03
Cap Table
- Founders.
- Employees and option pools.
- SAFE holders.
- Preferred investors.
- Common shareholders.
- Other securities and rights.