Priced Round
topic on 4 shows · 6 statements across 6 episodes
the Y Combinator Startup Podcast 
A Product Market Fit Show 
Top Founders 
20VC
6 statements about Priced Round, every show
Browder: Long-term seed investors should prefer SAFEs over priced rounds
“So as a pre-seed and seed investor the kind of B minus VC investors will want to get that next round on a priced basis to get that gap markup. But if you actually care about the economics and making money in the long term, you want the next round on a safe bec…”
Walker: SAFEs Dominate All Startup Fundraising Rounds Under $4 Million
“Like safes are the dominant way to get money into a business. Now, anything under four million dollars is dominated by safes. Where it used to be, you'd start on safes and then you'd raise a seed, but if you're raising two and a half, three, four million dolla…”
Walker: Startups raising $500K should use SAFEs instead of priced rounds
“And by the way, if you're raising 500 can a price round, you should probably do that on safes anyways. You're going to save a lot on legal costs for how big that round is.”
Legal Fees for a $3M Priced Seed Round Average $20K-$25K
“I'd say for three million dollar round I would have seen everything from, you know, for a price on, you know, 10 K to 50 K. It's a pretty wide range. I'd say somewhere in the 20, 25 K seems to be median.”
Nathoo: SAFE Investors Cannot Know Final Equity Ownership at Signing
“At the time that you actually sign your safe, you don't really know how much ownership you're going to wind up with after the priced round, and the reason for that is that even though the safe says how the safe's going to convert, it doesn't specify how many s…”
Walker: Early-Stage Investors Avoid Priced Rounds as VCs Move Upmarket
“Obviously like the people who do Price rounds or really like to do those price rounds are all moving up market. You know, the old A is a B now and, or I'm sorry, the old B is an A now. And so, yeah, I think a lot of the earlier stage investors don't like to pr…”