more-arw search

Q&A Forum

How do you account for a SAFE Agreement on a Cap Table

We just raised $525K using a SAFE agreement and I am wondering how it should show on the Cap Table since we cannot calc the number of shares. For the momemt I just put the amount under Investment. The current Cap Table is the following:

Type No. of Shares % Own Investment
Series A 3,771,620 19.1% $3,000,000
Common Stock 1,695,873 8.6% $109,915
Common Stock - Founders 10,000,000 50.6% $10,000
Employee Options Distributed 3,042,346 15.4%
SAFE $525,000
Available Options 1,240,341 6.3%
Fully Dilluted 19,750,180 100.0% $3,644,915


(Director of Finance and Operations) |

I would think that the SAFE note would be listed as a Long-term Loan. Once you undergo another, official round of Financing, the Long-term Loan would be transferred to "Preferred Stock" and "Preferred Stock: Surplus Paid-in-Capital". I've used this method for Convertible Notes (which is similar to a SAFE, but with interest)

If you find a better answer, please let me (and the Proformative Community) know your findings.


Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.