Liquidation preferences have always seemed to be a case of having your cake and eating it too for investors. I’m guessing the original intent was strictly for downside protection. But it’s become a way for investors to guarantee a certain upside–risk mitigation at the expense of common.
Put another way, it’s terms like these that value [...]
Archive for the ‘Fundraising’ Category
Deal Terms: Liquidation Preferences, Founder Options
Posted in Fundraising, Startups, Venture Capital, founders on February 3, 2010 | 3 Comments »
