Investing in a SAFE

Joseph

If you invest in a pre-seed round of a startup, they usually do the investment as a SAFE (Simple Agreement for Future Equity). There is no share price or value other than the cash you pay for it. When/if the company gets SEED funding, you will get shares at a certain value (even though those shares don't trade publicly or probably at all). How do you account for this in Quicken?

Rocket J Squirrel

Create a brokerage account. Transfer the cash in. When you eventually get shares, create a security and use that cash to buy the shares in Quicken.