Definition
A funding round where the company's valuation is explicitly set and shares have a specific price—as opposed to convertible instruments where everyone kicks the valuation can down the road. Forces uncomfortable conversations about what the company is actually worth.
Example Usage
After two years of SAFEs and convertible notes, they finally did a priced Series A round at a $20M pre-money valuation.
Origin
Standard equity financing terminology, distinguished from convertible instruments in the 2010s when SAFEs became popular
Fun Fact
Many Silicon Valley lawyers argue that delaying a priced round too long creates confusion and potential litigation when the notes eventually convert.
Source: Venture capital financing documentation and securities law
Related Terms
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See “priced round” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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