Earlier quoted context omitted.
How does this happen with the typical SAFE?
Future investors can negotiate liquidation preference and participation terms that will give them a bigger part of the pot than their % ownership during a “liquidation event” I.e. basically any outcome other than an IPO will trigger those rights
Sure. But "liquidation events" are not the events that give you the wins. The point of angel is to get in while the company is cheap. Dilution is part of the math.