SAFE

Simple Agreement for Future Equity — a fast way to raise early money that converts to shares at your next priced round.

Why it matters

The default early-stage instrument (Y Combinator's); quick, but the caps stack up.

Valuation (Pre / Post-money)

What your company is worth in a round. Pre-money is before the new investment; post-money adds it in.

Dilution

The reduction in your ownership percentage when new shares are issued (a raise, an option pool).

Cap Table

The spreadsheet of who owns what — founders, investors, employees (the option pool).

Vesting

Earning your equity over time (commonly 4 years with a 1-year 'cliff') instead of all at once.