The press derived a valuation using valuation = price paid X 100/percent equity Those liquidation preferences mean that investors will pay more for their equit

The press derived a valuation using valuation = price paid X 100/percent equity Those liquidation preferences mean that investors will pay more for their equity % than they would have without them which inflates the valuation estimates used by the above formula. The basic idea is that not all % equity is the worth the same amount, but it is assumed to when a valuation number is reported.