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@altgate » Blog Archive » The 3X Liquidation Preference Is Back!

Altgate

@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.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Bottom Up Market Sizing » January 12, 2010. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

But, more importantly, is another point Mark buries later on, which includes an awesome post of his from 2010. I’ve seen every imaginable type of liquidation preference structure, pay-to-play dynamic, preferred return, ratchet, share/option bonus, option repricing, and carveout.

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Altgate

Raising Capital: 5 Reasons Convertible Debt Sucks HOT The Collapse of the VC Ecosystem & What It Will Look Like Post Recovery 10 Tips On Negotiating With VCs Dating…er…Fundraising Etiquette The Science & Art of Term Sheet Negotiation HOT How Liquidation Preferences Work HOT How Much Money Should I Raise?

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

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. Co-sale rights.

Finance 70
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Working for Equity Instead of Cash

genylabs.typepad.com

2010 Top 10 Small Business Trends. December 2010. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. They had a great managment team, A list VCs, great technology, excellent sales traction and market leadership in a very exciting space.

Equity 40
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Year End Management Changes

Altgate

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← The 3X Liquidation Preference Is Back! This is reminiscent of Yahoo bringing Jerry Yang back to be CEO (in that case they did it knowing that a potential sale was on the horizon). Bookmark the permalink.