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
How do you account for a SAFE Agreement on a Cap Table
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.
Filed Under: Credit & Capital