SAFE & Convertible Note (i-SAFE / CCD) Calculator
At what effective share price and ownership stake will my SAFE or Compulsorily Convertible Debenture (CCD) convert in the next priced equity round?
Financial Inputs
Annual interest accruing on convertible debt notes (0% for standard YC SAFE or Indian i-SAFE).
Maximum valuation ceiling at which the investor can convert into equity.
Standard conversion discount to next round share price (typically 15% to 25%).
Effective Conversion Price Per Share
The ₹1 Cr note accrues ₹12,00,000 interest over 18 months, converting ₹1,12,00,000 into equity.
New Equity Shares Issued to Noteholder
1,86,667
Effective Post-Conversion Equity Stake
15.7%
Key Financial Takeaways
- The ₹1 Cr note accrues ₹12,00,000 interest over 18 months, converting ₹1,12,00,000 into equity.
- Conversion mechanism: Valuation Cap Governed. Effective conversion price is ₹60 per share (vs next round price of ₹100), delivering a 40% effective discount.
- Investor receives 1,86,667 shares (15.7% ownership), yielding an immediate market value of ₹1,86,66,700 (1.87x MOIC).
Frequently Asked Questions
How does an i-SAFE note work in India under the Companies Act 2013?
Because pure US SAFE agreements are not explicitly defined under Indian company law, Indian startups issue an "i-SAFE" structured as Compulsorily Convertible Debentures (CCDs) or Compulsorily Convertible Preference Shares (CCPS) with 0.0001% non-cumulative interest, carrying valuation cap and discount rights that convert at the next qualified equity round.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
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