Founders - here's a cheatsheet with real market data to help you decide on your valuation cap in a SAFE fundraising.
All data from 2024. Covers 9,867 post-money SAFEs signed by US startups, all before any priced funding.
SAFE = Simple Agreement for Future Equity. It's the most common way early startups get their funding these days. If you want more info on how to use them, check this out: carta.com/safes
To the data!
๐๐ป๐ด๐ฒ๐น ๐ฅ๐ผ๐๐ป๐ฑ (๐จ๐ป๐ฑ๐ฒ๐ฟ $๐ฎ๐ฑ๐ฌ๐ ๐ฟ๐ฎ๐ถ๐๐ฒ๐ฑ)
Valuation caps all over the place, but median is $7M
Implied dilution is 3.5% or so
๐๐ถ๐ด ๐๐ป๐ด๐ฒ๐น ๐ฅ๐ผ๐๐ป๐ฑ ($๐ฎ๐ฑ๐ฌ๐-$๐ฐ๐ต๐ต๐ ๐ฟ๐ฎ๐ถ๐๐ฒ๐ฑ)
$8M median val cap
Dilutionย ย varies, but somewhere in the 5-8% range
๐ฆ๐บ๐ฎ๐น๐น ๐ฃ๐ฟ๐ฒ-๐ฆ๐ฒ๐ฒ๐ฑ ๐ฅ๐ผ๐๐ป๐ฑ ($๐ฑ๐ฌ๐ฌ๐-$๐ต๐ต๐ต๐)
Median valuation cap of $10M
8%-10% dilution
๐๐ถ๐ด ๐ฃ๐ฟ๐ฒ-๐ฆ๐ฒ๐ฒ๐ฑ ๐ฅ๐ผ๐๐ป๐ฑ ($๐ญ๐ -$๐ฎ.๐ฐ๐ )
Median valuation cap of $12M
12%-15% dilution
๐ฆ๐ฒ๐ฒ๐ฑ ๐ฅ๐ผ๐๐ป๐ฑ ($๐ฎ.๐ฑ๐ -$๐ฑ๐ )
Median valuation cap of $20M
18%-20% dilution (matches a seed round done on priced equity quite well)
๐ฆ๐ฒ๐ฒ๐ฑ+ ๐ผ๐ฟ ๐๐ถ๐ด ๐ฆ๐ฒ๐ฒ๐ฑ ๐ฅ๐ผ๐๐ป๐ฑ ($๐ฑ๐ +)
Median valuation cap of $36M
18%-22% dilution
Startups are increasingly using SAFEs for 1, 2, or even 3 of these rounds - all before they move over to priced equity. I'd suggest raising on fewer separate valuation caps for a little more cash on each if possible.
And don't be afraid of priced equity - yes, lawyers are expensive, and yes it will take a little longer. But you then have a real share price!
#startups #founders #SAFEs #valuationcap #preseed
Non-GMO startup data! Subscribe for fresh figures every week at the link in graphic below
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ยฉ 2026 Carta. All rights reserved. Reproduction prohibited.
