4 ms·
Yes, that is how 'liquidation preferences' work.[1] I strongly recommend reading/watching Mark Suster, who (in my opinion) does a good job at explaining invest
by nickff 11y ago
Yes, that is how 'liquidation preferences' work.[1] I strongly recommend reading/watching Mark Suster, who (in my opinion) does a good job at explaining investors and terms.[2][3]
[1] https://en.wikipedia.org/wiki/Liquidation_preference https://en.wikipedia.org/wiki/Liquidation_preference
[2] http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2516 http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2516
[3] http://www.bothsidesofthetable.com/ http://www.bothsidesofthetable.com/
- hobbyjogger 11y agoJust thought I'd point out that the example given doesn't tell us anything about liquidation preferences (though of course you can assume they would be involved, since we're talking VCs here, but they don't matter). The relevant financing term here is anti-dilution. Here's Feld: http://www.feld.com/archives/2005/03/term-sheet-anti-dilution.html http://www.feld.com/archives/2005/03/term-sheet-anti-dilutio....