Startup founders - there are many different flavors of the SAFE. Here's which kinds are most popular in 2024.
Data: 8,762 SAFEs signed in 2024 by companies using Carta cap table.
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Post-money SAFEs now make up 85% of all signed SAFEs
Pre-money used to be more of a player, but the market shifted to post-money when YC switched their default templates.
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Do these SAFEs have valuation caps or discounts or some combination of the two?
Valuation cap only is the most popular type of SAFE (61% of all SAFEs)
Val cap and discount makes up another 30%
A few discount-only SAFEs (8%)
Vanishingly few SAFEs that are un-discounted AND uncapped
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Year by year, discounts have become less common on SAFEs. This is a bit surprising, as I'd expect in funding downturns investors would want both terms in their SAFEs but the market is clearly moving more towards no discount. When a discount is present, it is usually 20% (which isn't much, all things considered).
Valuation caps rise as the amount of cash raised rises. Right around $10M cap for $1M raised at the moment.
A significant portion of SAFEs signed by funds (as opposed to those signed by individual angels) also come with a side letter. The most common terms in those side letters are MFN, pro-rata, and information rights.
Fundraise SAFE-ly out there!
If you want to get started fundraising on SAFEs, you can do so for free using Carta Launch - our free cap table service available to all founders who have raised less than $1 million. Create your SAFE in a few clicks and watch the capital flow directly on to your cap table here: https://lnkd.in/gxpx5DBK
#startups #SAFEs #fundraising #founders
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