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# What a SAFE actually promises
- URL: https://weiter-money.nichedthemes.com/what-a-safe-promises/
- Published: 2026-09-22T07:00:00.000Z
- Updated: 2026-09-22T07:00:00.000Z
- Description: A SAFE is a promise about a future price. Read the cap and the discount first.
- Author: Elias Brandt
- Tags: The words, Terms, #memo, #Import 2026-11-11 10:07

**In short.** A SAFE converts at the next round. The cap matters more than the discount. Stacked SAFEs dilute more than founders expect.

A SAFE is quick to sign, and that is its risk. Three of them, signed over a year at different caps, can take more of the company than a priced round would have.

__Three SAFEs converting at a €8m round__
| SAFE at €4m cap, €200k | 5.0%  |
| ---------------------- | ----- |
| SAFE at €5m cap, €300k | 6.0%  |
| SAFE at €6m cap, €400k | 6.7%  |
| Total before the round | 17.7% |