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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. When we reference organizations that have provided us funding in the last year we will note it. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have.

Equity 40
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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).