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What does the Alchemist SAFE mean for our pre/post money valuations when creating a cap table?

J
Written by Jasmine Sunga
Updated over 5 years ago

It’s best to speak to a lawyer on all things involving your cap table. Or have Carta handle the cap table. They should be able to input our info for the first cap table as a template so you can continue to update from there for added angels. Once you do a priced round, the lawyers should update it.

Having said that, here's some general guidance.

The cap table is a breakdown of the equity capitalization of a company. In other words, a listing of all the equity holders.

SAFEs and Notes are not equity yet. They become equity after you do a priced financing round. Calculating the final amount of how much equity they will amount to is tricky, and is not required for a typical cap table. (It will be a function of the size of the financing round, the round's valuation, the SAFE / Note's cap, and discounts or other sweetners involved.

What's standard practice is to list out the equity holders of the company. And any Notes / SAFEs can be documented on a separate tab with the caps and discounts of the SAFEs noted.

So for Alchemist, just list the common equity held by Alchemist for its entities in the cap table. For the SAFE associated with Alchemist, list that separately on a separate Notes / SAFEs tab with the amount, cap, and discount rate.  

On the cap table you would just list the equity holders. So for alchemist you can list the common stock owned by the two alchemist entities. The SAFE is not equity yet as it has not converted. But you can list outstanding notes and SAFEs and just list the amounts of the SAFEs and the caps / discount. 

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