Post-Money SAFE

The version of the SAFE that Y Combinator introduced in 2018, where the cap is set on the post-money valuation, so an investor's ownership is fixed and easy to calculate at signing.

Why it matters

Post-money SAFEs are cleaner for investors but shift more dilution onto founders, and it compounds when several stack up. Modeling the full stack before signing is essential to avoid a nasty surprise at conversion.

For example

An angel signs a post-money SAFE at a 20 crore cap for 40 lakh, locking in exactly 2 percent ownership at signing, before later SAFEs dilute the founders further.

Worth your time

YC Safe Financing Documents (Official Post-Money SAFE) Y Combinator · article The primary source for the SAFE itself, plus YC's plain-English primer explaining post-money mechanics. Use the official document, not a random copy, and read the primer before you sign. Open ycombinator.com →

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