Use when a founder is choosing how to structure a raise. Triggers on "SAFE vs priced round", "should I use a SAFE", "valuation cap vs discount", "post-money SAFE", "convertible note", "when to do a priced round", "MFN clause". Explains the instruments and their real dilution consequences.
Click to play with sound.
---
name: safe-vs-priced-round
description: Use when a founder is choosing how to structure a raise. Triggers on "SAFE vs priced round", "should I use a SAFE", "valuation cap vs discount", "post-money SAFE", "convertible note", "when to do a priced round", "MFN clause". Explains the instruments and their real dilution consequences.
---
# SAFE vs Priced Round
The instrument you raise on decides how much you dilute, when, and how much
control you trade - often more than the headline valuation does. Founders who
treat the SAFE as "free money now" get a nasty surprise at the priced round.
This skill makes the choice deliberate.
## When to use this skill
Use it during [[fundraising-stage-selector]] when sizing the round and before
signing anything. Model every choice through [[cap-table-manager]] so the
dilution is real, not abstract.
## The instruments
### SAFE (Simple Agreement for Future Equity)
- No interest, no maturity, converts to equity at the next priced round.
- Fast (signable in days, legal cost near zero on standard docs), cheap,
standard (Y Combinator post-money SAFE). Dominant at pre-seed and seed.
- **Post-money SAFE**: the investor's percentage is fixed at signing; *founders*… install to load the full skill