A fundraising round where a specific per-share price and company valuation are set — such as a Series A — as opposed to a note or SAFE that defers valuation.
A priced round is a fundraising round in which investors receive preferred stock at a fixed price per share, establishing an actual valuation for the company. Series A, Series B, and subsequent institutional rounds are all priced rounds. The price per share is negotiated based on the company's pre-money valuation divided by the total fully diluted shares.
Priced rounds are more complex and expensive to execute than SAFE or convertible note financings — they require detailed legal documentation (Certificate of Incorporation amendment, Stock Purchase Agreement, Investors' Rights Agreement, Right of First Refusal Agreement, Voting Agreement) and typically cost $25,000–$75,000 in legal fees. But they give both sides certainty: investors know exactly what they own, and founders know exactly how much they've diluted.
A priced round also triggers the conversion of any outstanding SAFEs and convertible notes: those instruments convert into preferred stock at the rates specified in each instrument. Managing this math across multiple SAFEs with different caps and discounts is one reason companies use equity management software like Carta once they approach a priced round.