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ENT 404 · Unit 4 of 6

SAFEs, Notes and Priced Rounds

Entrepreneurial Finance, SAFEs and Cap Tables

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Learning objectives

  • Model SAFE conversion and dilution scenarios
  • Apply "SAFEs, Notes and Priced Rounds" to a real venture decision
  • Contribute to your Fundraising financial memo deliverable

Unit overview

#LessonCore idea
1Core Principles of SAFEs, Notes and Priced RoundsCore frameworks for this unit
2Designing an Approach to SAFEs, Notes and Priced RoundsCore frameworks for this unit
3Common Risks and Failure Modes in SAFEs, Notes and Priced RoundsCore frameworks for this unit
4SAFEs, Notes and Priced Rounds: Practical Decision ExerciseCore frameworks for this unit

Complete all four lessons, then finish unit assessments on this page.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

50% applied project30% case work20% knowledge checks

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: SAFEs, Notes and Priced Rounds45 min
Complete a focused practice exercise on **SAFEs, Notes and Priced Rounds**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ENT 404.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: SAFEs, Notes and Priced Rounds30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ENT 404 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Case analysis

Analyze a case using frameworks from this unit.

CaseCase analysis: SAFEs, Notes and Priced Rounds60 min
Analyze a real business case through the lens of **SAFEs, Notes and Priced Rounds**. Choose a public company event, HBR-style case, or documented decision. **Deliverable structure:** 1. Situation summary (150 words) 2. Analysis using this unit's frameworks (400 words) 3. Recommendation (150 words) 4. Risks and what would change your mind

Deliverable

2-page case write-up in your portfolio.

Rubric

  • • Case facts are accurate and sourced
  • • Analysis uses unit frameworks explicitly
  • • Recommendation is justified with tradeoffs
  • • Risks are specific, not generic

Knowledge quiz

Check your understanding before marking the unit complete.

1. RelayOps raises $1.2M on a post-money SAFE cap of $8M. Approximate SAFE holder ownership at conversion (before Series A new money) is:

2. Series A price is $1.60 per share. RelayOps SAFE has a 20% discount. Conversion price on the discount path is:

3. RelayOps $400,000 convertible note: 6% interest, 18-month maturity, $10M cap. Compared to a SAFE with no interest, the note investor's extra protection is primarily:

4. A qualified financing trigger for SAFE conversion usually requires:

5. RelayOps chooses between stacking a second SAFE at $12M cap vs a $400K note. Lesson 4 warns that multiple SAFE caps create:

6. Priced seed at $8M pre-money sells 2,000,000 new shares for $2M. Post-money valuation is:

7. MFN (most favored nation) on an early SAFE means:

8. RelayOps Series A: $4M at $16M pre-money implies post-money of $20M. New investor ownership from the round alone is:

Next unit: Cap Tables, Dilution and Scenario Modeling →