How AI is Shaping the Future of Venture Capital
RSVP for April 30th
1

Asked by

Community Member

on

in

General VC Questions

how do you calculate valuation cap for SAFE

1 See in Base
1

Answered by

Neal Strickberger

on

The Post-Money Valuation Cap SAFE from YC Template (this is the standard SAFE document template) the valuation cap is explicit.
Other versions of the SAFE are discount, where valuation is the priced round minus the agreed discount, or MFN (Most Favored Nations) where the SAFE holder gets the best terms of all SAFEs in that funding round.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?