First Backer (SAFE)

A friendly angel wires you $100k on a SAFE at a $5M valuation cap. No interest, no maturity, no price per share - yet.

The SAFE just sits in your inventory. When you eventually raise a priced round, it converts to shares at the better of (the round price) or (the cap).

SAFEs are fast and cheap, but stack too many and your future-self will get a nasty surprise at conversion time. Track every one of them.