How discounts and caps work for convertible notes, Pre-money SAFEs and Post-money SAFEs 

Thank you, Steve. I need this information for my podcast network, the World Podcast Network. This is a great explanation on such a SAFEs, CAPs, and discounts. A little confusing, but I am sure I will eventually get it. I am preparing a pitch deck now and am on the Ask slide, so your explanation was clear. Now, I need to determine the numbers.

This is insightful

Thanks!

I was a little confused, but I think I figured it out. Around the 6:30 mark in the Post-money Cap description, the text on screen show "Inv. A gets 5% of $1.176M". I believe Investor A gets 5% of 1.176M shares, not 5% of 1.176M dollars, correct? Same comment for Investor B, it's 10% of shares, not 10% of dollars. BTW, this is incredibly valuable stuff you are doing!

Thank you for your great video. If a VC want to "invest $100k to us through a SAFE with the post money valuation cap of $7M or 20% discount", is their their equity 1.5%? And what is the term "or 20% discount" but not "and 20% discount" here?

So if a company is raising $50k and their SAFE has a 5% discount on a 1mm valuation cap and I want to invest $100, what is my share amount?

After Investor A and B get the lower price of $3.25 that means they get more shares… does that mean in time you could be giving up more equity in your company than what was originally thought?

What is not clear from this video series: Does the pre-money valuation have to be specified on a fully diluted basis? Or can it also be on an undiluted basis? As it's not consistent in the video series, I think it creates confusion on how to perform the calculations and what exactly the difference is between a post-money and pre-money SAFE.

Thanks for the great video. Question: If the founders are to invest significant money into their own startup, what are the advisable ways to handle it? Should they be treated as other 3rd party investors? Or are the specific terms to be considered for them?