Gust

MAY 24, 2012

By contrast, venture capital and angel investments normally take the form of Preferred Stock with rights and preferences set forth in the company’s Certificate of Incorporation and other governance documents. As a matter of symbolism, it smacks of outright contempt for financial investors.

IPO 159

IPO Equity Common Stock Stock 159

Startup Company Lawyer

MARCH 14, 2010

The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference. The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Dividend preference.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

www.founderinstitute.com

MARCH 2, 2010

He counsels public and private company clients in a variety of industries including information technology, government contracting, software and telecommunications. Participation" means that investors "double dip" by getting both their liquidation preference and their equity allocation. -

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

genylabs.typepad.com

SEPTEMBER 24, 2011

Emergent Research works with corporate, government and non-profit clients. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. government policy. Intuit Future of Small Business Resources. The Changing Face of Entrepreneurs. Cloud Services.

Equity 40

Equity Technical Review San Jose Stock 40

Gust

NOVEMBER 15, 2012

In my own portfolio I have companies that are generally perceived to be extremely successful with high profile customers and lots of sales…but they just happen to have a liquidation preference ladder of $25 million!

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

ithacaVC

SEPTEMBER 20, 2011

That means, assuming a 1X liquidation preference, that the common stock should be worth zero NOW simply based on the fact that the aggregate liquidation preference exceeds the M&A revenue multiples. Furthermore, it is in an industry where M&A transactions typically happen in the 3-4X revenue range.

Liquidation Preference 49

Liquidation Preference Common Stock Stock Options Valuation 49

abovethecrowd.com

APRIL 20, 2016

If you really want to liberate your own common shares and those of your employees, then you want to convert the preferred to common and remove both the control and the liquidation preference over your shares. For the most part, early investors in Unicorns are in the same position as founders and employees.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40