the discount varies by investment round. common shares for early stage companies come with a huge discount. or perhaps it is clearer to say that preferred sha

the discount varies by investment round. common shares for early stage companies come with a huge discount. or perhaps it is clearer to say that preferred shares come with a huge premium primarily because the liquidation preference (LP) is so valuable at that stage). preferred shares in later rounds have a much lower premium, because investors don't value the LP as much.