Article
The Hidden Dilution Trap for Founders in Post-Money SAFEs
Post-money SAFEs can create unexpected founder dilution when startups raise multiple SAFE rounds. Unlike pre-money SAFEs where later investors dilute everyone proportionally, post-money SAFEs protect investor ownership percentages and shift all dilution burden onto founders. Understanding this critical difference before signing can prevent costly surprises at your first priced financing.
Gesmer Updegrove LLP