A $1b valuation on a common stock is a different animal from a convertible preferred at a $1b valuation. The convertible preferred is almost closer to a bond wi

A $1b valuation on a common stock is a different animal from a convertible preferred at a $1b valuation. The convertible preferred is almost closer to a bond with an attached warrant struck at a $1b valuation, with additional protections like non-dilution, IPO guarantees. Those terms make a big difference. Try to do a deal without them and see...will be a dealbreaker, or a vast change in multiple and other protections for the investor. If they didn't matter investors wouldn't demand them. https://www.fenwick.com/FenwickDocuments/The-Terms-Behind-The-Unicorn-Valuations.pdf https://www.fenwick.com/FenwickDocuments/The-Terms-Behind-Th... http://avc.com/2011/07/financing-options-preferred-stock/ http://avc.com/2011/07/financing-options-preferred-stock/