Venture Deals · glossary
A reduction on the round price for money that came in early. Both Solaris instruments had 20%, so their discount price at the Series A was €800. It set the noteholders’ price, while the angels’ cap set theirs. Definition of Discount · Chapter 3
Explained in Chapter 3, SAFEs and Advance Subscriptions, of Venture Deals.
The discount covers the opposite case. If the round is cheap, the cap does nothing. Without a discount, the early money would then pay the same price as the late money. A 20% discount is usual, and the angels got it.Read Chapter 3, SAFEs and Advance Subscriptions →
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20%, being the discount to the Subscription Price payable in a Qualifying Financing at which a Convertible Instrument converts; and the price so given is 80% of that Subscription Price (so that the price given by the Discount was €800 for both the Advance Subscriptions and the Notes on a Subscription Price of €1,000);Read the definition in the document →
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This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Venture Deals → · All terms A–Z →