# The priced round

> Preferred stock at a price per share, on the NVCA documents: Northwind's planned Series Seed.

Source: https://lopifi.com/learn/ways-to-raise-startup-capital/priced-round
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is a priced round, and what is a Series Seed?** Preferred stock at a price per share, on the NVCA documents: Northwind's planned Series Seed.

In a [priced round](https://lopifi.com/md/glossary/priced-round) investors buy a new series of [preferred stock](https://lopifi.com/md/glossary/preferred-stock) — Series Seed, Series A — at a price per share set by the [pre-money valuation](https://lopifi.com/md/glossary/pre-money-valuation), on a [term sheet](https://lopifi.com/md/glossary/term-sheet) that the definitive documents implement. Most US venture rounds are papered on the NVCA's model documents: a certificate of incorporation, a stock purchase agreement, an investors' rights agreement, a voting agreement and a right of first refusal and co-sale agreement.

— [NVCA Model Legal Documents](https://nvca.org/model-legal-documents/), The model certificate of incorporation, stock purchase, investors' rights, voting and ROFR/co-sale agreements

**Northwind — Northwind's Series Seed.** The plan for October 1, 2027: $2,000,000 at $8,000,000 pre-money, the pool topped up to 10% post-money, the SAFE converting. The price is $8,000,000 ÷ 9,758,496 pre-money shares ≈ $0.819798, the new investors get 2,439,624 shares — 20.00% — and the SAFE's 473,684 shares become Series Seed too.

*[Figure: cap table]*

The Series Seed rides in: 2,439,624 new shares and a pool topped up by 284,812. Every other wedge narrows by the same factor.

**Priced round**
- Pro: A real price for everyone, and SAFEs and notes convert
- Pro: Preferred terms are standard (NVCA)
- Pro: Clean cap table for the next round
- Con: Legal work and time: a charter amendment, several agreements, a closing
- Con: Investors get control rights — board seats, protective provisions
- Con: A price that later rounds must beat
- Best for: A lead investor ready to set a price; typically a larger round

## Where this page's rules come from

- [NVCA Model Legal Documents](https://nvca.org/model-legal-documents/) — The model certificate of incorporation, stock purchase, investors' rights, voting and ROFR/co-sale agreements (reference)
- [Wikipedia, “Venture capital financing”](https://en.wikipedia.org/wiki/Venture_capital_financing) — Venture rounds — background (reference)

## Read further

- https://lopifi.com/md/startups/audit-ready-books-before-series-a
- https://lopifi.com/md/accounting/priced-round

- **Track:** [Cap tables & raising](https://lopifi.com/md/learn/equity)
- **Part of:** [Ways to raise: SAFEs, notes, priced rounds, debt and grants](https://lopifi.com/md/learn/ways-to-raise-startup-capital) — 5 min
- **Terms taught:** [Priced round](https://lopifi.com/md/glossary/priced-round), [Preferred stock](https://lopifi.com/md/glossary/preferred-stock), [Term sheet](https://lopifi.com/md/glossary/term-sheet), [Pre-money valuation](https://lopifi.com/md/glossary/pre-money-valuation)
- **Previous:** [The convertible note](https://lopifi.com/md/learn/ways-to-raise-startup-capital/convertible-note)
- **Next:** [Venture debt](https://lopifi.com/md/learn/ways-to-raise-startup-capital/venture-debt)
- **The course:** https://lopifi.com/md/learn