3 ms·
i think the article should at least mention the liquidation preferences of the VC investors. for example, if the if the company sells for less than the $1B amo
by elsewhen 12y ago
i think the article should at least mention the liquidation preferences of the VC investors. for example, if the if the company sells for less than the $1B amount raised, the founders would likely end up with zero (assuming that the investments were made with a 1x liquidation preference).
- boomzilla 12y agoThat's right. Does any know what's the standard participating and liquidation preferences these days? I know first hand a technical founder who made almost nothing from a >100M exit because the investors got 2x the money they put in first, before the rest is distributed to the common stock holders.
- elsewhen 12y ago1x liquidation preferences are the standard in tech investments these days.