SAFE conversion calculator
SAFE stands for simple agreement for future equity.
A SAFE converts into shares at the next priced round, at the lower of the cap price and the discounted round price. Shares = amount ÷ conversion price.
The formula
SAFE = amount ÷ the lower of the cap price and the discounted round price
Worked example: 89,286 shares
The example uses the guide's seed round, £200,000 for 20%, with a matching cap table, exit, fund and market.
- Round price £0.70 a share; converts at £0.56 (the discounted price)
- £50,000 ÷ £0.56 = 89,286 shares
Work out your SAFE
Until you type a figure, the results show an example business. Fill in only what you know: from then on every result uses your figures alone, and nothing you type leaves your browser.
SAFE conversion for the example
Example89,286
shares
- Round price £0.70 a share; converts at £0.56 (the discounted price)
- £50,000 ÷ £0.56 = 89,286 shares
- A standard SAFE can put SEIS and EIS relief at risk; UK angel rounds usually use an ASA instead.
Formula: Amount ÷ the lower of the cap price and the discounted round price.
- Share of the company
- 5.9%
Everything your numbers show
For the example business: 27 of 27. Type your own figures to replace them. Select one for its page.
- Valuation£1,000,000post-money
- Pre-money valuation£800,000
- Post-money valuation£1,000,000
- Equity20.0%Equity sold
- Dilution70.0%kept by existing shareholders, down from 100.0%
- Option pool142,857new pool shares
- Fully diluted60.0%Fully diluted ownership
- SAFESimple agreement for future equity89,286shares
- Loan note96,429shares
- Pro rata rights£200,000Pro rata amount
- Liquidation preference£1,000,000to the investor
- Vesting180,000after 18 months
- Cliff120,000at month 12
- SEISSeed Enterprise Investment Scheme£10,000
- EISEnterprise Investment Scheme£6,000
- VCTVenture capital trust£4,000
- TAMTotal addressable market£240,000,000a year
- SAMServiceable available market£60,000,000a year
- SOMServiceable obtainable market£3,000,000a year
- Down roundDown round
- Up roundDown round
- Flat roundDown round
- MOICMultiple on invested capital2.80x
- IRRInternal rate of return22.9%a year
- TVPITotal value to paid-in capital1.50x
- DPIDistributions to paid-in capital0.40x
- Dry powder£24,000,000
How to read your result
The lower the cap, the more shares the SAFE holder gets. The working shows which of the cap and the discount wins.
Watch out for
UK investors who want tax relief under SEIS or EIS (the Seed Enterprise and Enterprise Investment Schemes) usually cannot use a standard SAFE. An ASA (advance subscription agreement) is the usual UK alternative.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.