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Why we picked it This is the cost and dilution receipt to go with the CRV framework: SAFEs run 2k to 5k in legal and close in a week, priced rounds run 15k to 40k. Then it does the math that matters, three 500k post-money SAFEs at an 8M cap quietly cost you 18.75%, not the ~6% each you'd assume, which is exactly the SAFE-stacking surprise a priced round prevents.
SAFE vs priced round at seed: which, when, and the dilution math
From Causo Hub by Causo 12 min read
- Legal fees: 2k to 5k for a SAFE versus 15k to 40k for a priced round, and a SAFE closes in about a week
- Post-money SAFEs stack against the founder, three 500k SAFEs at an 8M cap take 18.75%, not ~6% each
- A priced seed looks worse short term because the 10% option pool refresh hits day one, while the SAFE just defers that pool refresh to the next round