SAFE discount : 20%

updated 7/23/2024

What's the most common Discount for SAFE investment?

20%

Quick note : there is a distinction between Discount and Discount Rate, where Discount Rate = 100% - Discount. Typically conversations would be about Discounts. (e.g. We'll invest with a SAFE with a 20% discount) but the actual SAFE will use Discount Rate (e.g. 80%). Gave me a startle when I first saw this

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Couldn't find any hard data on discounts used, but there is overwhelming statements saying that 20% is the standard, and seems safe to assume that if you have 20% discount on your SAFE, it can be considered "market".

In fact, I have not (yet) come across a single source that says otherwise.

Some sources

"The discount may range anywhere between 5% to 30%, with 20% being the norm." - Founder’s Guide: SAFE - Westaway

"15-25% of the price per share paid by the new investors, with 20% being the most common discount." -klehr.com

"SAFEs sometimes apply discounts, usually between 10% and 30%" - Anton Shardin @Leta Capital

10-20% is a common discount range but it can vary - TKNtyson

[7/23/2024 update]