Recommends SAFE, convertible note or priced round for your stage, names the cap, discount and MFN terms to seek and resist, and models the fully converted dilution so the choice is deliberate.
Recommends SAFE, convertible note or priced round for your stage, names the cap, discount and MFN terms to seek and resist, and models the fully converted dilution so the choice is deliberate. 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".This is the skill's description: the text your AI reads to decide when the skill applies.
safe-vs-priced-round/SKILL.md
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name: safe-vs-priced-round
description: Recommends SAFE, convertible note or priced round for your stage, names the cap, discount and MFN terms to seek and resist, and models the fully converted dilution so the choice is deliberate. 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".
---
# 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*… load the full skill through Skill MeClick to play with sound.