Employee Liquidation Preference Participating Preferred Startup 
Altgate
DECEMBER 18, 2008
@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. What’s the alternative?
Feld Thoughts
FEBRUARY 28, 2023
KG companies have decisive tax disadvantages for startups and are, therefore, rarely used in this area. Conversion right: In Germany, there is generally no conversion right entitling the holder of preferred shares to convert them into common shares at any time. regarding employee issues. KG companies exist in Germany.
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Startup Company Lawyer
FEBRUARY 21, 2010
Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. If you can’t figure this out yourself, you should probably build a liquidation preference spreadsheet to model how liquidation preferences work depending on M&A transaction value.
Both Sides of the Table
SEPTEMBER 2, 2009
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. In my first company I had to raise money in April 2001 or die.
Professor VC
JULY 25, 2013
In investment parlance, it strictly means that new classes of stock have equal rights with prior classes in terms of liquidation preference, voting rights, etc. Startup outcomes tend to be very binary. Their response was that we should be happy they didn''t ask for a participating preference on top of the seniority.
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