If a company never raises a priced round, the SAFE only converts if the company is sold or goes public, which is a rare scenario.

When raising money, there are two ways to do it: either the price is set for the investment or it isn't, which typically involves convertible notes or safes.

When raising funds, it's advisable to use post-money SAFEs to simplify calculations and better track future dilution, even if pre-money SAFEs have been used in the past.

In a priced round, the SAFE converts into shares based on the pre-money valuation, which includes the increased options pool.

The easiest rounds to raise are the later ones, as there is usually a lot of interest from investors at that stage.

It's crucial for founders to understand their dilution when raising money through SAFEs or convertible notes, as they may end up owning significantly less of the company than expected after a priced round.

Most startups raise money by selling a part of their company, typically through preferred stock, rather than common stock, which is not sufficient for raising meaningful amounts.

In a priced round, the SAFEs convert into shares, and the option pool is often increased to accommodate new hires, which can dilute existing shareholders.

The traditional method of raising early money involved a Series A preferred stock financing, which was a lengthy and expensive process.