How a round actually works

You'll be able to work out dilution, ownership, and payout math on a SAFE, note, or priced round before you sign anything.

0/12 · score 0

Concept 1 of 6

SAFE vs Priced Round vs Convertible Note

A SAFE gives an investor the right to future equity without setting a valuation now, with no interest and no maturity date in the standard template — which made it the default US pre-seed/seed instrument. A Convertible Note is actual debt: it accrues interest and has a maturity date, after which it technically becomes payable if it hasn't converted, creating real pressure a SAFE doesn't have. A Priced Round issues shares at an explicitly agreed valuation right now — more legal work, but immediate clarity on ownership for everyone.

Go deeper first