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

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

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.

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.

Founders should avoid negotiating too hard on SAFE caps, as setting them too high can lead to selling more of the company than anticipated during a priced round.

When raising funds, it's advisable to use post-money SAFEs to simplify calculations and better track future dilution, even if pre-money SAFEs have been used in the past.

Investors should review the cap table and conversion calculations carefully when their SAFEs convert, as errors can occur and affect their ownership stake.

Choose your valuation carefully; too high can scare off investors, while too low can lead to excessive dilution. The goal is to get the money in the bank and get back to work. Don't over-optimize your fundraising process; focus on the essentials instead.

Investors should model their SAFE conversions to understand the implications of multiple SAFEs with different valuations and discounts, as this can complicate ownership stakes.