1
General VC Questions

What is an investor discount in a SAFE?

Asked by:
Community Member
1
0
0
Nov 26, 2023
1 answer
Accepted Answer
Nov 26, 2023
Convertible notes sometimes include a conversion discount, which enables the investor to convert their debt into equity at a lower valuation then new investors in the subsequent financing round. SAFE notes also sometimes include a discount rate which provides investors with a lower price per share upon conversion.

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Apply to VC Lab Cohort 14

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 14