SAFE

“It's pretty easy to see in the data that if you're raising about a million dollars on a safe, the median valuation cap on Carta is a ten million valve cap. So ten million valve cap, one million raised. So that's a 10% ownership stake for that safe investor in …”

“You should use them once, maybe twice, and then don't be afraid of price rounds. Cause they actually make, they clean the cap. They make everyone understand their ownership really succinctly. And then everyone shares in that dilution of the following fundraise…”

“And by the way, if you're raising 500 can a price round, you should probably do that on safes anyways. You're going to save a lot on legal costs for how big that round is.”

“And so safes pretty much crossed 75% of early stage funding, if we're talking about like pre-seed and seed, effectively in, in early twenty-twenty-two.”

“Something like 30% of the time you don't exceed it and you raise on a valuation that's less than the valuation cap of your most recent save.”

“If you took a bridge on a safe or a note after you had already raised price funding, so this is all about priced seeds to price series A, the percentage on the convertible bridges was four percent.”

“As long as it's one safe, you start stacking safes. And I just don't like the confusion that that brings to, you know, what does that actual ownership, you know, look like? Like when I'm giving out ESOP, what percent am I really giving?”

“Like safes are the dominant way to get money into a business. Now, anything under four million dollars is dominated by safes. Where it used to be, you'd start on safes and then you'd raise a seed, but if you're raising two and a half, three, four million dolla…”