Customer Liquidation Preference Seed Money Technology 
Both Sides of the Table
MAY 13, 2013
And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. Let’s assume $2 million in seed money. That’s why liquidation preferences exist – downside protection. Go do a startup.
Both Sides of the Table
SEPTEMBER 2, 2009
In my first company I had to raise money in April 2001 or die. I took money with a 3x participating preferred liquidation preference with 8% compounded interest annually. Coupled with my participating preferred from 1999 and 2000 I had more than $55 million of liquidation preferences.
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