What Is a Post-Money SAFE?
In short
A post-money SAFE is a SAFE where the investor's ownership is fixed against the company's value after all SAFE money is counted. It is the standard Y Combinator version and lets founders and investors see exact ownership the day the money arrives.
- Category
- Fundraising
- Read time
- 1 min
- Related terms
- 4
- Reviewed
- November 3, 2026
Formula
How it is calculated
Investor ownership = investment ÷ post-money valuation cap
See it in numbers
Worked example
You raise $500K on a post-money SAFE with a $5M cap. The investor will own $500K ÷ $5M = 10% when the SAFE converts, before the next priced round.
You then raise another $500K on the same terms. That investor also gets 10%. The two SAFEs together take 20%, and that 20% comes out of the founders' share, not out of the first SAFE holder's 10%.
The investor view
Why it matters for early-stage founders
Every extra SAFE you stack dilutes only the founders and existing shareholders. Knowing the formula lets you see your real ownership before you sign, instead of after the priced round.
Watch out
The common mistake
Treating several post-money SAFEs as if they dilute each other. They do not: each SAFE holder keeps their percentage, so the founders absorb all of it.
Questions
Frequently asked
Put it to work
See what your SAFEs really cost
Model your SAFEs and the next round to see founder ownership after conversion.
Keep learning
Go deeper
Related terms
Keep exploring
- SAFE noteA SAFE note (simple agreement for future equity) is an investment contract where an investor gives money now and receives shares later, usually at the next priced round, often with a valuation cap or discount.
- Valuation capA valuation cap is the highest company valuation at which a SAFE or convertible note turns into shares. It rewards early investors for taking more risk by letting them convert at a lower price than new investors pay.
- Post-money valuationPost-money valuation is what your company is worth right after new investment comes in. It equals the pre-money valuation plus the money raised.
- Equity dilutionEquity dilution is the reduction in your ownership percentage when your company issues new shares, for example to investors, employees or an option pool.