In both priced rounds and SAFEs, the formula for calculating post-money valuation is pre-money valuation plus the amount raised.

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 number of shares an investor receives is calculated by dividing the investment amount by the price per share, which is based on the company's valuation.

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.

When a company raises money on a post-money SAFE, the founders should understand that they have sold 15% of the company, which means they can no longer own 100% of it.

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.

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

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.

Valuation, which is the value of your enterprise, and dilution, which refers to how much of your company you have sold, are critical concepts in fundraising.