SAFE, note, or priced round
Use the same raise and valuation number for a SAFE, a convertible note, and a priced round. Compare what each one sells, costs, and takes.
Compare
One raise, three instruments
Use the same money and the same valuation number for a SAFE, a note, and a priced round. Compare what each one sells and costs.
Post-money SAFE
10%
The investor's share, before later rounds dilute it
- The number means
- The value after the money
- Legal fees
- Up to $10K
- Fees as a share of the raise
- Up to 1%
- Time to close
- 1 to 2 weeks
- Interest and maturity
- None
- Investor rights
- No board seat and no votes
Convertible note
9.95%
The investor's share, before later rounds dilute it
- The number means
- The value before the money
- Legal fees
- Moderate
- Fees as a share of the raise
- No survey number
- Time to close
- Moderately fast
- Interest and maturity
- 7% a year, and a maturity date
- Investor rights
- A lender until the note converts
Priced round, Series Seed
9.09%
The investor's share, before later rounds dilute it
- The number means
- The value before the money
- Legal fees
- $25K to $65K
- Fees as a share of the raise
- 2.5% to 6.5%
- Time to close
- 4 to 8 weeks
- Interest and maturity
- None
- Investor rights
- Preferred stock and votes
For $1M at $10M, the SAFE sells 10%, the note 9.95%, and the priced round 9.09%. The post-money SAFE treats $10M as the value after the money, so it sells more than the priced round. The note's 18 months of interest add 0.86 points to what a priced round sells.
On Series Seed documents, the legal fees for the priced round are $25K to $65K, which is 2.5% to 6.5% of the money. Legal cost depends mostly on the type of round, so the fees use the largest part of the money on a small raise.
In 2025, most early rounds under $4M on Carta used SAFEs or notes, not priced rounds.