# Priced round

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

Also called: priced equity round, equity round, priced financing, equity financing, preferred stock financing

A fundraising round where investors buy [shares](https://ecosystem.samcarlton.com/equity) at a set price per share, which fixes the [valuation](https://ecosystem.samcarlton.com/valuation) of the company. It contrasts with a [SAFE](https://ecosystem.samcarlton.com/safe) or [convertible note](https://ecosystem.samcarlton.com/convertible-note), where the share price is set later.

**For example:** Investors agree to buy [shares](https://ecosystem.samcarlton.com/equity) at 1 dollar each in a company with 8 million shares. That prices the company at 8 million dollars before the new money.

## Connects to (7)

- [Series A](https://ecosystem.samcarlton.com/series-a): Usually the first larger funding round led by a venture capital firm, where investors buy shares at a set price.
- [Valuation](https://ecosystem.samcarlton.com/valuation): What the company is agreed to be worth for the purpose of an investment.
- [SAFE](https://ecosystem.samcarlton.com/safe): Simple agreement for future equity.
- [Lead investor](https://ecosystem.samcarlton.com/lead-investor): The investor who negotiates the terms of a round with the founders and usually puts in the largest share of the money.
- [Preferred stock vs common stock](https://ecosystem.samcarlton.com/preferred-stock): The two main kinds of shares in a startup.
- [Pro rata rights](https://ecosystem.samcarlton.com/pro-rata): An investor's right to buy enough shares in a later round to keep the same percentage of the company.
- [Liquidation preference](https://ecosystem.samcarlton.com/liquidation-preference): A term that sets who gets paid first, and how much, when a company is sold or shut down.

> This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.

Map view: https://ecosystem.samcarlton.com/priced-round