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.

Most companies will raise money first on SAFEs or other convertible instruments, which can complicate understanding how much of the company has been sold.

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.

In Boston, while SAFEs and convertible securities are common on the West Coast, local angel investors may be less familiar with these financing methods, indicating a need for education in the ecosystem. I recommend approaching fundraising with convertible securities because they can be done quickly and flexibly.

When raising money on SAFEs, the investor's ownership is calculated by dividing their investment amount by the post-money valuation or valuation cap.

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.

Negotiating a SAFE typically involves only two points: the amount of money the investor will contribute and the valuation cap.

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

Investing in a startup through a SAFE, convertible note, or equity will yield similar returns if the startup is successful, as seen with Airbnb's valuation growth.