Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. I turned them down.
Both Sides of the Table
MARCH 1, 2016
In just over a decade, new firms like USV, Foundry, Spark, True Ventures, First Round, Greycroft (I might add Upfront) have made names for themselves from a non-traditional Silicon Valley stance. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.
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Both Sides of the Table
MAY 30, 2015
When you do a convertible note with a cap that converts into the next round of funding one of the unintended consequences is that if you’re successful and raise at a larger price than your cap the early angels often get “multiple liquidation preferences” on their dollars in.
ReadWriteStart
SEPTEMBER 2, 2011
As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Next if you are going to raise a round, find one or two partners to do it with.
Both Sides of the Table
MAY 13, 2013
If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If That’s why liquidation preferences exist – downside protection. Almost certainly the startup would have raised some capital.
K9 Ventures
JUNE 5, 2015
Low supply of companies with traction drove the valuations and deal sizes up. The Venture Capital industry as a whole does a terrible job of giving things the right name and so we end up keeping the same name, but changing the meaning out from under it. Valuations are rising to match. Seed stage was super tough.
Growthink Blog
JANUARY 24, 2011
One very popular "preferred right" or "preference" that adds very significant value to outside investors and is common in venture capital investments is a liquidation preference. The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e.
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