Founders should be cautious about how much they raise on SAFEs, as it dilutes their ownership in the company.

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 crucial for founders to keep track of how much equity they've sold through SAFEs, as this affects their ownership percentage and future fundraising.

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.

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.

Being more generous with equity for co-founders is beneficial, as it fosters long-term motivation to stay committed to the startup, especially during challenging times.

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

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.

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.