---
title: "What Is As-Converted?"
term: "As-Converted"
description: "As-converted ownership shows what each shareholder would own if all convertible instruments — SAFEs, notes, and preferred stock — converted into common stock at the terms in the cap table. It is the fully diluted picture investors use before a priced round closes."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["venture-capital"]
source: https://venturecapitaltracker.com/glossary/as-converted
---

# What Is As-Converted?

> As-converted ownership shows what each shareholder would own if all convertible instruments — SAFEs, notes, and preferred stock — converted into common stock at the terms in the cap table. It is the fully diluted picture investors use before a priced round closes.

**As-converted** describes ownership calculated as if every convertible security already became common stock. It is the standard way to read a cap table when SAFEs, convertible notes, or multiple preferred classes are outstanding.

## How it works

Start with issued common shares (founders, employees, early angels). Then add shares each convertible instrument would receive if it converted today — using the conversion price, discount, or valuation cap in each SAFE or note, and the conversion ratio for preferred stock.

Example: a founder holds 6 million common shares. A SAFE with a $10 million cap converts at a $20 million pre-money price on a new round, yielding 1 million new common shares. As-converted, the founder owns 6M / 7M ≈ 86%, not 100%. Preferred stock usually converts 1:1 unless anti-dilution or liquidation preferences change economics; as-converted share count still drives voting and pro rata rights.

Cap table tools label columns "as-converted" or "fully diluted" interchangeably in many startups, but fully diluted can also include an unallocated option pool. Read the footnotes.

## Why it matters

- **Founders:** Negotiate option pool top-ups and note stacks knowing your as-converted stake after the priced round, not before.
- **Investors:** Term sheets set ownership targets on an as-converted basis; they will model multiple SAFE caps before offering a price.
- **Operators:** Hiring grants and 409A valuations reference the same fully diluted share count.

## Common mistake

Ignoring uncapped or stacked SAFEs when telling yourself "I still own 70%." Each instrument converts independently; the as-converted denominator grows with every prior instrument.

## Related ideas

Fully diluted shares, [/glossary/authorized-shares](/glossary/authorized-shares), pro rata rights, and liquidation preference (economic outcome can differ from as-converted voting power).

## FAQ

### What is as-converted in simple terms?

As-converted means 'if everything that can turn into common stock did so right now.' You add the shares from converted SAFEs, convertible notes, and preferred stock to see who owns what on a fully diluted basis.

### Why does as-converted matter?

Founders often focus on nominal founder percentages before conversions. Investors price rounds on as-converted ownership because that is what they actually buy into. Misunderstanding it leads to surprise dilution at signing.


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Source: https://venturecapitaltracker.com/glossary/as-converted