Participating Preferred Sales Startup 
Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating.
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. The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. in 2012 sales and $2M in income.
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Startup Company Lawyer
MARCH 14, 2010
In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference.
Lightspeed Venture Partners
OCTOBER 1, 2012
The company did $1M in sales last year, 90% from wholesale, and had a 10% profit margin. They wanted to get to $10M in sales and then get bought by a big food company. The sales history is anemic, but perhaps the biggest asset that the company has is a trademark for Rockbands in the apparel field. pre money valuation).
The Startup Toolkit
NOVEMBER 4, 2011
Vision for B2B, sales-driven technology. Next, we check that we’re safe from any particularly onerous terms like participation preferred. On the other hand, maybe we can move somewhere less rainy than London… One of the first pieces of startup advice I ever got was to “Never take money from a virgin investor.”
The Startup Lawyer
JANUARY 10, 2012
In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. A liquidation preference is the amount that must be paid to a preferred stock holder before any sale proceeds may be paid to the holders of common stock (i.e., founders, option holders, etc.).
The Startup Toolkit
NOVEMBER 4, 2011
Vision for B2B, sales-driven technology. Next, we check that we’re safe from any particularly onerous terms like participation preferred. On the other hand, maybe we can move somewhere less rainy than London… One of the first pieces of startup advice I ever got was to “Never take money from a virgin investor.”
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