Priced Round
Also known as Preferred Stock Financing, this is a mechanism whereby an investor contributes capital in exchange for stock in a privately held company.
The rate of capital to stake in the company is determined by a negotiated valuation of that company.
There is a Price Per Share price at which the investor purchases the shares the company.
A Priced Round required more negotiation and legal work to determine the valuation of the company, as opposed to something like a Simple Agreement for Future Equity (SAFE).
When an early-stage company does not have a set valuation, or when a founder does not want to give investors preferred stock in exchange for capital, the company may raise an unpriced round, which commonly involves an investor providing cash or a loan in exchange for a convertible security (convertible).
The two most common types of convertible securities are SAFEs (Simple Agreements for Future Equity) and convertible notes.
Convertible securities are then automatically converted to actual equity shares at a later time, during the first priced round.