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Finance & Moneyadvanced

SAFE Discount

Simple Agreement for Future Equity Discount

Definition

A reduction on the share price that early SAFE investors get when their investment converts into shares in a later round.

Why it matters

A SAFE discount rewards early investors for their risk by letting them buy shares more cheaply than later investors.

Example

An investor with a 20% SAFE discount converts at 80p when the next round prices shares at £1.

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