# Safe Note Converter MCP for AI Agents MCP

> Safe Note Converter calculates equity conversion, share issuance, and ownership dilution from SAFE conversions. It helps founders and investors figure out exactly how much of the company is handed out during a new funding round.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_AlLVMcKUYPgfu1nYHLD1XWD2UkvMmtCZYfyWRHPp/mcp
- **Tags:** safe, equity, conversion, valuation, dilution, startup, cap-table

## Description

Safe Note Converter is a specialized computational tool for founders and investors to simulate the equity conversion process of a SAFE. By using this Connector, you can accurately determine the impact of financing rounds on your capitalization table. The engine evaluates both valuation caps and discount rates to find the effective conversion price, calculates the exact number of shares issued based on the original investment, and determines the resulting ownership stake in the post-money scenario. It's a reliable way to handle these complex calculations without the risk of manual spreadsheet errors. If you're managing a startup's growth, you can find this and other finance tools in the Vinkius catalog to keep your data accurate.

## Tools

### calculate_effective_conversion_price
Finds the price per share by comparing valuation caps and discount rates. It ensures you're using the most favorable price for the investor.

### calculate_ownership_stake
Tells you the final percentage of the company an investor owns. It looks at the total post-money shares to give you a clear ownership view.

### calculate_shares_distributed
Calculates the exact number of common shares a SAFE holder gets. It takes your investment amount and the conversion price to give you a hard number.

## Prompt Examples

**Prompt:** 
```
What's the price if my cap is $5M, 10M shares exist, and the next round is $0.60 with a 20% discount?
```

**Response:** 
```
Here is the breakdown for your conversion price:

| Calculation Method | Resulting Price |
| :--- | :--- |
| **Valuation Cap** ($5M / 10M shares) | $0.50 |
| **Discount Rate** ($0.60 * 0.80) | **$0.48** |

**The effective conversion price is $0.48** because the discount-driven price is lower than the cap-driven price.
```

**Prompt:** 
```
If I put in $500,000 and the effective conversion price is $0.50, how many shares do I get?
```

**Response:** 
```
Based on an investment of $500,000 and an effective conversion price of $0.50, you will receive:

**1,000,000 common shares**.
```

**Prompt:** 
```
I got 1,000,000 shares and the total post-money shares are 20,000,000, what is my stake?
```

**Response:** 
```
Based on those numbers, your ownership stake is:

**5.0%**
```

## Capabilities

### Calculate conversion prices
Finds the price per share by comparing valuation caps and discount rates.

### Determine share distribution
Calculates the exact number of new common shares issued to a SAFE holder.

### Calculate ownership stakes
Shows the final ownership percentage an investor gets in a post-money scenario.

### Simulate dilution impact
Predicts how new funding rounds will affect existing equity.

### Evaluate cap vs discount
Automatically identifies which pricing mechanism is more favorable for the investor.

## Use Cases

### Predicting dilution for a seed round
A founder wants to see the impact of a $5M cap versus a 20% discount on a new seed round to understand the total dilution.

### Verifying investor share counts
An investor needs to know their exact share count for a $500k investment at a $0.50 price point before signing the final docs.

### Clearing old SAFEs for a Series A
A startup is preparing for a Series A and needs to clear out old SAFEs to see the final ownership percentage of the company.

### Auditing a cap table for legal review
A legal team needs to verify the math on a conversion to ensure the cap table is correct before closing the deal.

## Benefits

- Get accurate conversion prices by using calculate_effective_conversion_price to automatically pick the lower of a cap or discount.
- Avoid share count errors by using calculate_shares_distributed to get exact numbers based on your specific investment amount.
- See your final ownership clearly with calculate_ownership_stake so you know exactly how much of the company you own after a round.
- Run multiple funding scenarios quickly to see how different caps and discounts impact your total dilution.
- Keep your cap table consistent by using the same logic for every SAFE note conversion in your startup's history.

## How It Works

The bottom line is you get accurate cap table math without the manual spreadsheet errors.

1. Provide your AI client with the funding terms like valuation cap, discount rate, and price per share.
2. The Connector processes the math to find the effective conversion price and total shares issued.
3. You get back the final share counts and the resulting ownership percentage.

## Frequently Asked Questions

**Can Safe Note Converter handle both valuation caps and discounts?**
Yes, it compares both the valuation cap and the discount rate to determine which one results in the lower price for the investor.

**How does it help with dilution?**
It calculates the final ownership percentage an investor gets after all new shares are issued in a funding round.

**Is this for every type of note?**
It is specifically built for SAFE notes that include valuation caps and discount rates.

**Can I use it to see how many shares I'll get?**
Yes, you can provide your investment amount and the conversion price to get the exact number of shares issued.

**Does it work for different funding rounds?**
It can simulate any round by letting you input different caps, discounts, and share counts.

**How does it calculate the conversion price?**
It looks at your next round's price per share and applies the discount or cap to find the most favorable price for the note holder.

**How does the effective conversion price calculation work?**
The `calculate_effective_conversion_price` tool compares two values: the price derived from the valuation cap and the price derived from the discount rate. It selects the lower of these two prices to ensure the investor receives the most favorable terms as defined in their SAFE agreement.

**Can I calculate my post-conversion ownership percentage?**
Yes. By using the `calculate_ownership_stake` tool, you can provide the number of shares issued during conversion and the total post-money shares outstanding to find your exact ownership percentage.

**What inputs are required for calculating shares distributed?**
To use `calculate_shares_distributed`, you need the original investment amount and the effective conversion price per share calculated in the previous step.