Glossary · Fundraising instruments
SAFE discount
A percent off the price per share that early SAFE holders pay when their SAFE converts — another way to thank people who invested before the priced round.
Related: SAFE · Valuation cap · Priced round
A bit more nuance▾
- Discount and cap interact; model both together.
- Too little discount can chill angels; too much can over-dilute founders.
Go deeper▾
Discussion questions▾
- What discount feels fair for the risk your earliest backers took?
- How does discount change if the next round is much bigger than expected?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.