No Mess (Too Much Liquidation Preference)
ithacaVC
DECEMBER 14, 2011
Yes, it is possible to issue preferred stock without liquidation preference, but that is rarely done. Rather, preferred stock has the right upon a liquidation event to get its money back (a 1X LP) or, sometimes, a multiple of its money back (for example a 2X LP). Is the $13mm of aggregate LP a problem? It might be.
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