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Participating Preferred
+ Pre-Money Valuation
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| Page 1 of 1 | Previous | Next | ASK THE ANGELS FEBRUARY 8, 2011 The Truth About Early Stage Pre-Money Valuations think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation , rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. | | | | | | | | THE STARTUP LAWYER JANUARY 10, 2012 Avoid Offensive Liquidation Preferences In most equity financing rounds, an investor will ask for (and get) a term called a liquidation preference. liquidation preference is the amount that must be paid to a preferred stock holder before any sale proceeds may be paid to the holders of common stock (i.e., Preferred Stockfounders, option holders, etc.). | | | | | | | | | | | |
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