That's an interesting way of framing it. A 1x liquidation preference is like buying a loan at 0.50 on the dollar. A 0x liquidation preference (insurance that

That's an interesting way of framing it. A 1x liquidation preference is like buying a loan at 0.50 on the dollar. A 0x liquidation preference (insurance that you'll get your original investment back) would be more "bond-like" to me. Good point that the employee can similarly adjust his/her price on the compensation offer. Unfortunately, I think a lot of employees in SV dont understand the dynamics at hand here. If you are an early employee, it's also not possible to know if the company will accept a 2x liquidation pref investor in the future.