If a company never raises a priced round, the SAFE only converts if the company is sold or goes public, which is a rare scenario.

Founders need to be aware that their ownership percentage can decrease significantly due to dilution from SAFEs and new equity rounds, so they should plan accordingly for future fundraising. The percentage of ownership for SAFE investors is based on the valuation cap in the SAFE, and if the priced round valuation is higher than the cap, they convert at the cap, receiving more shares for the same investment than Series A investors.

When signing a SAFE, you might expect to own around 9% of the company based on an $800,000 investment at an $8 million cap, but this can be diluted by new money coming in during the priced round.

The SAFE converts into shares when the company completes an equity financing, which can be a priced round or a series round.

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.

Founders should be cautious about how much they raise on SAFEs, as it dilutes their ownership in the company.

It's crucial for founders to understand their dilution when raising money through SAFEs or convertible notes, as they may end up owning significantly less of the company than expected after a priced round.

In rare cases where the priced round valuation is lower than the SAFE cap, SAFE investors may receive a better deal, converting at the lower price of the Series A round.

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