The pre-seed SAFE was designed to compress the time between founding and first money by deferring the valuation argument entirely. New data from altshare, covering more than 3,000 private companies, shows founders are using that instrument at record levels at the same moment investor capital is concentrating into AI and cybersecurity. The firm's Q2 report was released July 15.
Where capital is landing
Early-stage investors are narrowing their bets, with AI and cybersecurity pulling the majority of attention, per the altshare report. The practical effect for founders in other sectors is a harder fundraising environment even as overall SAFE volumes reach record levels. Capital is moving, but to specific places.
The record pre-seed SAFE activity suggests founders are closing rounds faster and earlier, before investor conversations reach a pricing negotiation. In a concentrated market, getting capital signed before that window closes is a rational response to where attention is going.
Solo founders and the headcount shift
The rise of solo founders across altshare's dataset is the structural flip side of the junior hiring decline the report also documents. A solo operation has no management layer to absorb a hire who needs close oversight. So when startups do add headcount, they go experienced. The report confirms that preference is now visible at scale across more than 3,000 companies.
The solo founder model also changes the equity table before any external money enters. One founder means full ownership through the pre-seed stage, which matters when SAFE notes eventually convert and dilution hits.
The cost side of concentration
Junior candidates pay the most visible price in this model. When startups optimize for experienced hires and keep headcount lean, entry-level roles in early-stage companies shrink. The altshare Q2 data makes that concrete: junior hiring is falling even as startup formation continues.
For founders outside AI and cyber, the concentration dynamic is a pricing problem as much as a fundraising one. Investors choosing where to spend their attention will favor the categories they understand best, and the Q2 data across more than 3,000 private companies suggests that tilt is already underway.