Quoted Price

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A quoted price is the specific price per share a company or investor puts on the table in a financing document, such as a term sheet, a SAFE valuation cap, or a 409A valuation, as opposed to an informal verbal estimate.

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Founders often hear an investor’s number during a pitch meeting, but nothing is real until it appears as a quoted price in a signed term sheet.

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Is a quoted price binding?

Only once it is written into a signed, definitive document. A verbal or emailed number can change right up until then.

How is the quoted price per share calculated?

By dividing the agreed company valuation by the fully diluted share count, which is why founders should confirm the share count used before accepting any quoted number.

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