ithacaVC

NOVEMBER 18, 2011

In my earlier post on management carve out plans (see it here ), I gave a detailed description of what these plans are and why boards of VC-backed companies often use them. get both the carve out amount and the equity value; I guess double dipping is only for VCs that have participating preferred stock ).

Management 49

Management Preferred Stock Participating Preferred Equity 49

Berkonomics

JANUARY 6, 2022

Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation. One tool often used: the “cutout” for management. That further reduces the amount available to founders if not still in the ranks of management.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

Berkonomics

OCTOBER 1, 2015

Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation. That further reduces the amount available to founders if not still in the ranks of management. So this advice is directed to the investors.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

Early Growth Financial Services

FEBRUARY 3, 2015

Today, we’re tackling participating versus non-participating preferred stock, a fundamental economic term in VC deals that goes to the heart of the business agreement between investors and management in connection with a sale of the company. management). management).

Preferred Stock 28

Preferred Stock Stock Finance Participating Preferred 28

Altgate

DECEMBER 18, 2008

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Holiday Cards Year End Management Changes → The 3X Liquidation Preference Is Back! Let’s recap how expensive a 3x liquidation preference really is. Bookmark the permalink.

Liquidation Preference 31

Liquidation Preference Venture Capital Post-Money Valuation Participating Preferred 31

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.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

www.payne.org

SEPTEMBER 22, 2011

Ive seen companies with $75m of preference, and very frustrated common stockholders that realize the company needs to get acquired for $100m or more for them to start making any money. (To To keep things simple, Ive omitted many details for preferred stock, such as "participating preferred" mechanisms.

Equity 56

Equity Employee Vesting Preferred Stock 56

ConversionXL

MARCH 19, 2012

These learned preferences can just as easily involve characteristics that, from an objective standpoint, do not make a product any better and might even make them worse — particularly when it relates to texture. Overwhelmingly, both halves of participants preferred the nice plump chicken, but their reasoning was different.

Social Media 129

Social Media Technical Review Arlington Clickthrough 129

ConversionXL

APRIL 17, 2019

These learned preferences can just as easily involve characteristics that, from an objective standpoint, don’t make a product any better—and might even make them worse, especially when it comes to texture. It’s your responsibility to be aware of them and manage them accordingly. This translates online as well.

Customer 132

Customer Social Media Arlington Media 132