When raising money on SAFEs, the investor's ownership is calculated by dividing their investment amount by the post-money valuation or valuation cap.

The SAFE investor's shares are calculated based on the conversion price, which is determined by the valuation cap if it's lower than the priced round valuation.

The post-money valuation is calculated by adding the pre-money valuation to the total amount raised, which determines the ownership percentages for new investors.

In a non-priced round, investors often have a valuation cap that sets an upper limit on the company's valuation for future share conversions, rewarding early investors with more shares if the company grows significantly.

When calculating ownership percentages after a priced round, it's important to remember that the total number of shares includes both common and preferred shares, which have different rights and privileges.

Valuation refers to the estimated worth of a startup based on the last investment round, but it doesn't guarantee a liquid market like in public companies, making it more of a measure of perceived value.

In a merger or acquisition, a SAFE investor converts their investment into shares of common stock based on the target valuation, allowing them to participate in the proceeds of the merger.

The valuation of a business is determined by its ability to generate cash flow that can be distributed to investors, or by its potential for acquisition based on unique technology or market position.

In a priced round, the SAFE converts into shares based on the pre-money valuation, which includes the increased options pool.