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What is Priced Round?

Definition

Priced Round

A Priced Round is a funding round where investors purchase equity at a specific, negotiated per-share price, establishing a formal valuation for the startup.

Detailed Deep Dive

Priced Rounds represent a mature phase of startup fundraising. Setting an official share price requires comprehensive legal documentation and audits, converting previous SAFEs into formal equity shares.

Frequently Asked Questions

Q:How does a priced round differ from a SAFE round?

A priced round sets an official company valuation immediately, whereas a SAFE note defers valuation to a future round.

Q:What legal documents are required for a priced round?

Stock Purchase Agreement, Investor Rights Agreement, Co-Sale Agreement, and Voting Agreement.

Quick Facts

  • CategoryFunding
  • Key ApplicationSeries A and Series B institutional financing rounds

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