Fundraising Tool: SAFE Conversion Scenarios

International expansion and fast growth of many Peru startups has motivated more founders to raise money through SAFE or SAFE-like vehicles. The agreement allows investors to fund now while key investment terms, like valuation, are postponed for subsequent financing rounds.

However, founders and investors still need to map out all of the potential scenarios in order to maintain alignment and manage expectations. A SAFE document, compared to equity, opens up a range of future scenarios for entry valuation, and sometimes control, for investors. Both the amount of money raised in the SAFE and the valuation cap of the document will affect the investors eventual entry point.

Here is an excel you can download to run through conversion scenarios for a SAFE or SAFE-like vehicle: SAFE Conversion Scenarios

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I hope it helps and please let me know if you see areas of improvement so we can update the tool.

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