Question 1

How do I calculate SAFE (Simple Agreement for Future Equity)?

Accepted Answer

Use the formula(s) on this page. Keep inputs consistent by period and basis.

Question 2

What are good benchmarks?

Accepted Answer

Benchmarks vary by model and stage. See Benchmarks on this page for ranges.

Question 3

Common pitfalls?

Accepted Answer

Inconsistent definitions/time windows; wrong basis (revenue vs gross profit).

SAFE (Simple Agreement for Future Equity)

Agreement to invest now for equity later at conversion.