Deal Terms
Priced Round
A financing round that establishes a specific per-share price and valuation — as opposed to a convertible note or SAFE which convert at a future price.
A priced round is a financing in which investors receive equity at a specific, negotiated price per share with a set valuation. This contrasts with convertible instruments (SAFEs, convertible notes) that convert to equity at a future price. Priced rounds require significantly more legal work: creating a new class of preferred stock, drafting a term sheet, investors' rights agreement, right of first refusal agreement, voting agreement, and certificate of incorporation amendments. This legal complexity (and cost — $15-30K in legal fees) makes priced rounds inefficient for very small early-stage investments, which is why SAFEs dominate pre-seed and seed. The first priced round is typically Series A — establishing a formal capitalization structure with institutional investors.