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.
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Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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