Priced Round

A funding round where investors buy shares at an agreed price per share, which sets an explicit valuation for the company, unlike a SAFE or note that defers it. Formalized in a term sheet and share purchase agreement.

Why it matters

A priced round nails down ownership and governance in writing, so everyone knows exactly what they own. Founders move to priced rounds once a valuation can be justified, usually at Series A.

For example

At Series A the startup does a priced round: investors buy shares at 100 rupees each, fixing the valuation and ownership in a signed share purchase agreement.

Go deeper

Priced Round vs. SAFE: How Founders Choose at Each Stage CRV (Charles River Ventures) · article This is the cleanest decision framework we found because it draws the line by cheque size, not vibes: under 1M and 1M to 2M go SAFE, 2M to 5M model both, above 5M go priced (70% of those deals are). It also names the trap our answer warns about, that every new SAFE dollar dilutes only you and stacking creates compounding asymmetric dilution you won't feel until Series A conversion. Open crv.com →

Related terms

Also in Starting Up

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

eChai Partner Brands The partnership →