finance · Claude · free
Explain a SAFE agreement to a first time founder raising [$AMOUNT] from [INVESTOR] at [VALUATION CAP] with [DISCOUNT %] discount, [MFN Y/N], pro rata [Y/N]. Cover in plain English: What SAFE is (and isn't — it's not equity, not a note) How the cap and discount interact at the priced round (which one wins) What "post money SAFE" means for your dilution vs pre money MFN clause — when it protects you vs binds you Pro rata rights and the trap of granting them to non lead investors End with: (1) the 3 SAFE terms most first time founders regret, (2) the dilution math on a [$X priced round at $Y pre] scenario, (3) a one line summary to send to a co founder.
#safe #financing #explainer