Distribution Finance Participating Preferred 
Startup Company Lawyer
MARCH 14, 2010
After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).
Lightspeed Venture Partners
OCTOBER 7, 2012
Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. He had been at it for 6 months and had no sales or distribution lined up yet. I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective.
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ithacaVC
DECEMBER 14, 2011
Sometimes, after getting back the LP, the preferred holder then converts to common and gets its prorata share of proceeds left after all LP has been paid (this is called participating preferred). The “no mess” LP issue relates to investors in later rounds of financing (typically Series C and beyond).
Startup Company Lawyer
FEBRUARY 21, 2010
Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. If you can’t figure this out yourself, you should probably build a liquidation preference spreadsheet to model how liquidation preferences work depending on M&A transaction value.
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