How to avoid dilution with SAFE rounds

View profile for Shalki Chatrath

Portfolio Manager || Company Valuation Expert || Business Growth Catalyst || Investment Advisor & Financial Strategist || Mergers & Acquisitions II Private Equity II #fundraising #companyvaluation #Financialanalysis

Dilution Dynamics in Early-Stage Rounds Dilution starts (even though it may not feel this way) with the SAFE round.  Lots of founders are using SAFEs to raise their initial $500K…or $1M…or $5M. It’s much more common than it used to be. But if those SAFEs are all post-money, the dilution adds up quickly. Founders should be wary of stacking too many SAFEs on each other as they come with anti-dilution effects for investors. #VentureCapital #StartupFunding #fundraising #VcCircle #Funds #CompanyValuation #FundingRounds #strategy #investments #investors #PrivateEquity #Angelinvestors #GetFunded #Bootstrapping #thoughtleadership #founders #CFO Pre-Seed in the US : "Source Carta"

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Leonidas Papadopoulos

Founder & CEO at Viable | Scaling Startups into Global Ventures | Venture Builder & Investor | Forbes 30 Under 30

1y

Dilution dynamics are tricky waters. SAFEs stack compounding dilutive effects. Early founders, be mindful when raising follow-on rounds. Shalki Chatrath

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