Remove Forecast Remove Hiring Remove Liquidation Preference
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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Have not met anyone I wanted to hire who was willing to work for equity. Lessons from a Failed Forecast.

Equity 40
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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below). Liquidation preference. Whether that’s true or not depends in no small part on how the liquidation preference clause was negotiated with outside investors.

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Startup Lessons: Board Management

Venture Chronicles

To recap, here is the series thus far: 1) Hiring 2) Dynamic Org Structures 3) Product First 4) Marketing. Preferred shareholders are inherently conflicted in this regard because they enjoy advantages such as liquidation preferences and anti-dilution protections that give them a built-in advantage over the common class of stock.