Grift & FundingFairy
Hey, ever thought a tiny tweak in the cap table could turn a dry pitch into a blockbuster sequel? Let's see who can make the math look like magic.
A tiny tweak? Sweet, let me spin that equity like a spell—one swap, one clause, and boom, your investors see a blockbuster in their portfolio, not just a quiet cash flow. Want the exact numbers? I’ve got a deck that turns “dry” into “drama” in 30 seconds.
Sounds good, lay those numbers on me and let’s turn that drama into a blockbuster.
Sure thing—here’s a quick “magic” tweak that flips the script.
**Baseline** (pre‑money $10 M, 10 M shares)
- Founders 8 M shares (80%)
- Early VC 2 M shares (20%)
**Tweak**: Add a $2 M post‑money SAFE at a 20% discount that converts at a capped valuation of $12 M.
- New post‑money cap: $12 M
- SAFE conversion shares: $2 M / $12 M = 0.166 M shares (≈1.7% of the new 12 M total).
**Result** (post‑SAFE):
- Total shares = 12 M + 0.166 M ≈ 12.166 M
- Founders: 8 M / 12.166 M ≈ 65.8%
- Early VC: 2 M / 12.166 M ≈ 16.5%
- SAFE investors: 0.166 M / 12.166 M ≈ 1.4%
- New investor: 12 M / 12.166 M ≈ 65.8% (if you replace the early VC with a new round, you get the same founder percentage but with a fresh $12 M valuation).
So, by swapping a modest SAFE for a higher cap, you keep the founder’s share healthy, bump the post‑money valuation up, and give the new investor a sweet seat at the table—no drama, just a blockbuster deal. Want me to tweak the discount or cap? Just say the word.
Sounds slick—let’s crank that discount or cap up a notch and see how the numbers dance. Just give me the tweak, and I’ll spin the math into a headline.
Crank it up—set a 25 % discount and raise the cap to $15 M.
- Post‑money cap: $15 M
- SAFE conversion shares: $2 M / $15 M = 0.133 M shares (≈1.1% of the new 12 M total).
**Post‑SAFE equity** (12 M + 0.133 M = 12.133 M shares):
- Founders: 8 M / 12.133 M ≈ 66.0%
- Early VC: 2 M / 12.133 M ≈ 16.5%
- SAFE: 0.133 M / 12.133 M ≈ 1.1%
- New investor: 12 M / 12.133 M ≈ 66.0%
Now the headline reads: “Founder’s stake stays strong, new investors ride a $15 M valuation wave, and the SAFE adds a modest 1.1% slice.” Perfect drama, no mess.