Great analysis (and interesting idea regarding large funds recently raised by accelerators, etc.). However, if the implication is that this situation is even s

Great analysis (and interesting idea regarding large funds recently raised by accelerators, etc.). However, if the implication is that this situation is even somewhat common--your analysis doesn't match the data. If you look at Fenwick's VC Survey on Unicorn Financings[1], a paltry 5% involve participating preferred while even less (3%) involve multiple liquidation preferences. Has OP identified a possible strategy to "fudge" one's way to a Unicorn valuation? You bet. Are many companies using this strategy? Absolutely not. [1] https://www.fenwick.com/publications/Pages/The-Terms-Behind-the-Unicorn-Valuations.aspx https://www.fenwick.com/publications/Pages/The-Terms-Behind-...