Good question. As far as I can tell, valuation for priced rounds and cap valuations aren't exactly 1:1 At $1m with $4m cap, no discount, that ends up as 25%.

Good question. As far as I can tell, valuation for priced rounds and cap valuations aren't exactly 1:1 At $1m with $4m cap, no discount, that ends up as 25%. At 20% discount, that ends up being closer to 33%. With 7% already given to YC, that leaves 60% for founders and employees. 15mil is definitely a nice payday for them for sure. Another commenter mentioned this could have been at 8mil cap, 0% discount, which would have left the founders & employees with close to 80%, and extra $5 mil. This of course is pure speculation and fuzzy math on my part. There is now push back against a convertible note as an instrument as they tend to favor investors, and that the only upside for founders is that the paperwork tends to be standard, and you can get one for much cheaper than a priced round. The details of PA's funding could easily be another data point for why a Convertible Note isn't founder friendly.