Conversion discount is the percentage reduction to the price per share that a convertible note (or similar instrument like a SAFE) uses when it converts into equity in the next financing round—so the investor converts at a lower price than the new investors (e.g., a 20% discount means paying 80% of the round’s price per share).
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
