Definition
What is discount (SAFE or note)?
A discount lets SAFE or convertible note holders convert at a lower price than new investors in the next priced round — for example, a 20% discount means paying 80% of the round price.
Instruments can have a discount, a valuation cap, or both; with both, the investor usually gets whichever price is better for them.
General information, not legal, tax or investment advice.