Founders raising on a SAFE - what should the valuation cap be?
Data for the US only. Pre-seed, post-money SAFEs accepted on Carta from Q1 2021 through Q2 2023.
As you can see below, how much you intend to raise matters a lot when it comes to the valuation cap! We split the information by total raised to give a better sense of how each tier stacks up.
Companies raising $250K or less $6 million median val cap ($3M 25th pct | $10M 75th pct)
Raising $250K-$500K Also $6 million median, but a much higher floor
Raising $500K-$1M $10 million median, rising 75th pct
We see a fair number of companies employing a tranche strategy as well. This could be raising, say, $100K to start at a $5M cap, then another $250K at a $8M cap, etc.
Totally valid strategy, but don't let those SAFEs pile up without understanding how they'll impact your ownership down the road. Free calculator to help you with that from Carta if you just Google "Carta safe calculator"
Here's to raising SAFE-ly
#cartadata #SAFE #valuationcap #startups #preseed
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