Remove Distribution Remove Forecast Remove Liquidation Preference Remove Reference
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference.   First , dividends.

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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

Perhaps the best way to explain it is by a reference to something most of us are already familiar with—the ever popular television show, Shark Tank. They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below).