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.
Related terms
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