# Slingshot Safe Calculator

Welcome to our SAFE calculator! Simple agreements for future equity (SAFEs) can be a simple and cost-efficient way to raise money for your business at an early stage. However, the math behind a SAFE can be sneaky complicated, so we built this calculator to help.

Fill in the necessary information about your corporation and then try different investment scenarios to see how your SAFEs will convert to equity.

To keep this calculator (somewhat) simple, we’ve made a few assumptions when making calculations behind the scenes. For example, we’ve excluded shares a safeholder receives on conversion from the calculation of how many shares the incoming investor group will receive.

Have any questions? Let’s chat!

 Issued/Outstanding Shares Option Pool % of shares # of shares %

Issued and outstanding shares: this is the number of shares actually issued to and held by your company’s shareholders. If you have an up-to-date cap table, you’ll be able to find the information you need there. If not, try looking in your company’s minute book to see how many shares you have issued.

Option pool: your option plan (if you have one!) will set a number of shares that are reserved for issuance under options you grant your employees or contractors. That share reserve may be expressed as a percent or a fixed number of shares. If you don’t have an option plan, simply set the option pool to zero.

 Shareholder Name Shares % Ownership %

Cap Table: if you’re cap table is up-to-date, this section will be easy! If not, your company’s minute book is likely the best place to look. You can enter each shareholder’s holdings as either their percent ownership or the number of shares they hold – the table will autocomplete from there.

 SAFE Type Safeholder Name Purchase Amount Valuation Cap % Discount Financing Threshold Valuation Threshold Pre-money Post-money %

SAFEs Table: you can enter the core deal terms of your company’s SAFEs in this table. First, select whether the SAFE is pre- or post-money. Not sure? Check how the concept of your company’s capitalization is defined – if it includes convertible securities (including SAFEs), it’s probably post-money. Second, enter the purchase amount, valuation cap (if any), and discount rate (if any) – these terms are typically found on the first page of a SAFE. Finally, add in the SAFE’s financing threshold and valuation threshold, if applicable. These terms are usually included in the definition of an “Equity Financing”.

 Pre-Money Valuation Amount of Raise

In the investment inputs table, you can enter different investment scenarios to see how your SAFEs will convert in different circumstances. Planning a raise? Those deal terms are the perfect place to start.

Pre-money valuation: this is the value of your business before you bring in new investment. For example, if you are raising \$500,000 at a valuation of \$1,000,000, that likely means your pre-money valuation is \$1,000,000 and your post-money valuation will be \$1,500,000 (your pre-money valuation + the amount you raise).

Amount of raise: this is the amount you are looking to raise in your priced round.

 Issued/Outstanding Shares 0 Post-Money Valuation 0

 Shareholders Names Shares % Ownership Shareholder … 0 0% Safeholder … 0 0% Investor Investors 0 0%

The table above shows your cap table after you’ve received your investment and your SAFEs have converted. Note that your investors are treated as one group for the purposes of the table.

If you have questions about raising money for your business using a SAFE or what the impact of a priced round will be on your outstanding SAFEs, feel free to get in touch!

This calculator is provided for general information purposes only and does not constitute legal or financial advice or opinion. It should not be relied on as accurate, timely, or fit for any particular purpose. Gilbert’s LLP does not warrant or guarantee the accuracy or completeness of any information presented by this calculator.