Concept

SAFE

A SAFE converts into equity later, usually at a priced round. Cap, discount, and MFN set the table you sell from later — not paperwork trivia. Stacking SAFEs without modeling conversion is negotiating blind.

Where founders get this wrong

Treating the valuation cap as a vanity number instead of a dilution scenario.
Stacking SAFEs with mismatched terms and no pro forma of the next priced round.
Skipping counsel because 'everyone uses YC's post-money SAFE' — small edits still move ownership.