Quiz
Cap tables
The cap table math founders trip on: how a SAFE really converts, who the option pool dilutes, why giving up 20% twice doesn't leave you at 60%. Read each answer and grade it.
Question 1 of 10
A founder signs a post-money SAFE: $500K invested at a $5M post-money valuation cap. She asks what percentage of the company the SAFE investor will own when it converts.
A common answer
It can't be determined yet. The SAFE converts at the next priced round, so the investor's ownership depends on that round's valuation.
How would you grade it?
How sure are you?