No Mess (Too Much Liquidation Preference)
ithacaVC
DECEMBER 14, 2011
One final background point, a “liquidation event” is a sale of the company and typically NOT an IPO. So, after the Series B round the company would have $13mm of aggregate liquidation preference ($3mm plus 2*$5mm). Is the $13mm of aggregate LP a problem? Bottom line: we weary of building up too much aggregate LP.
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