3 ms·
Down rounds are also bad news for previous investors (and other shareholders, like employees) due to how liquidation preferences typically work.
by abhorrence 6y ago
Down rounds are also bad news for previous investors (and other shareholders, like employees) due to how liquidation preferences typically work.
- pm_me_ur_fullzz 6y agoA preferred share issue.
- xenocratus 6y agoThis article was an eye-opener for me on how that works: https://www.economist.com/finance-and-economics/2020/04/08/why-a-lot-of-startups-will-come-to-regret-their-unicorn-status https://www.economist.com/finance-and-economics/2020/04/08/w...