3 ms·
Liquidation preferences make a difference to the math here. For example, a 3x liquidation preference would guarantee the investors the first $9 million of proce
by BadCookie 3y ago
Liquidation preferences make a difference to the math here. For example, a 3x liquidation preference would guarantee the investors the first $9 million of proceeds from any exit in the $3 million investment example.
- morgante 3y agoLiquidation preferences rarely kick in until later rounds. Most seed rounds are just 1x.
- xyzzy_plugh 3y agoI know some late stage startups with multiple rounds where _all_ are 1x. Most likely ZIRP but still.
- siegel 3y ago1x IS a liquidation preference. I very, very rarely see in excess of a 1x liquidation preference, regardless of the round.