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.

In a non-priced round, investors often have a valuation cap that sets an upper limit on the company's valuation for future share conversions, rewarding early investors with more shares if the company grows significantly.

Investors should exercise their pro-rata rights to maintain their ownership percentage during subsequent funding rounds, as early investors can face significant dilution otherwise.

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

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.

It's sometimes beneficial to offer a lower salary in exchange for a higher equity stake, but not all employees may be open to this arrangement.

While priced rounds are still a common method for raising funds, they typically occur later in a startup's lifecycle, often after initial fundraising through SAFEs or convertible notes.

Investors know that founders want high valuations and often leverage this by offering a desired valuation while asking for unfavorable terms.

If you find a lead investor, the lead often wants to invest the entire amount to meet their ownership target, which can limit your options.