Remove Liquidation Preference Remove Retention Remove Seed Money Remove Technology
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The Corrosive Downside of Acquihires

Both Sides of the Table

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. We get the mechanics.