Equity round or convertible at pre-seed: what do founders in the Baltics and CEE choose?
At pre-seed SAFEs lead; at seed it is equity. Among CEE founders raising pre-seed who applied to BADideas in 2026 so far and named an instrument, 46% planned a SAFE and 32% an equity round. At seed, 72% planned equity.
The figures
| Instrument applicants planned, 2026 (to date) | Pre-seed, CEE | Seed, CEE |
|---|---|---|
| Equity round | 32% | 72% |
| SAFE | 46% | 6% |
| Convertible loan | 9% | 11% |
| A mix | 12% | 11% |
Where founders state a discount, it is almost always 20%. In BADideas application data, convertible loans are the least common choice at pre-seed, well behind SAFEs.
What is changing
| Founders raising pre-seed, all regions | 2025 | 2026 (to date) |
|---|---|---|
| Naming a SAFE | 39% | 51% |
| Naming equity | 48% | 33% |
| Quarter | Pre-seed applicants naming an instrument, all regions: SAFE | Equity |
|---|---|---|
| Q2 2025 | 36% | 50% |
| Q3 2025 | 50% | 33% |
| Q4 2025 | 37% | 58% |
| Q1 2026 | 47% | 37% |
| Q2 2026 | 48% | 38% |
| Q3 2026 | 54% | 27% |
At pre-seed, SAFEs are up from 39% in 2025; equity is down from 48% in 2025. Seed stays an equity round.
What it means for you
- Either is normal at pre-seed. A SAFE is quicker and cheaper to close; an equity round sets a price and gives investors shares now. Pick what your lead investor prefers.
- Expect equity at seed. 72% of CEE founders raising seed plan a priced round.
- On a convertible, 20% discount is standard. Negotiate the cap, not the discount.
Also answers
Are SAFEs replacing equity at pre-seed?
At pre-seed SAFEs now lead: 51% of founders raising pre-seed who named an instrument in 2026 so far planned a SAFE, against 33% equity. At seed, equity still dominates.
What discount is normal on a convertible?
20%. Almost every founder who states a discount states 20%.
How we measured it
- Source: applications founders sent to BADideas in 2025 and 2026 to date. CEE means the company is in a Central or Eastern European country. Only applicants who name an instrument count, about one in three at pre-seed. A "mix" is a round that combines two.
- Limits: these are founders who applied to one CEE pre-seed fund, so the sample leans towards companies that see themselves as a fit for it. A single quarter can swing, so read the change between years first. Discounts are stated in few applications, so treat them as indications.
- Read: 26 September 2026. Updated every quarter.
BADideas.fund, "Equity round or convertible at pre-seed: what do founders in the Baltics and CEE choose?", founder application data read 26 September 2026. https://badideas.fund/answers/equity-or-convertible-pre-seed-baltics
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