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

Pro-rata rights were not included in the original SAFE conversion round due to the different nature of seed rounds in 2013, but investors can negotiate side letters for these rights.

When calculating ownership percentages after a priced round, it's important to remember that the total number of shares includes both common and preferred shares, which have different rights and privileges.

Investors should ensure their rights under a SAFE are respected during conversion rounds, particularly regarding pro-rata rights, as ignoring these rights breaches the contract.

FF stock allows founders to sell shares in later rounds without affecting common stock valuation. It's advisable to set this up after initial success rather than too early.

Our pitch to shareholders included a 25% return on their investment within a year, with preferred shares converting to common shares after that return is met.

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 maintain transparency with founders regarding their rights and any changes to their agreements, fostering a strong relationship.

Founders need to be aware that their ownership percentage can decrease significantly due to dilution from SAFEs and new equity rounds, so they should plan accordingly for future fundraising. The percentage of ownership for SAFE investors is based on the valuation cap in the SAFE, and if the priced round valuation is higher than the cap, they convert at the cap, receiving more shares for the same investment than Series A investors.