Both Sides of the Table
APRIL 14, 2010
It’s a bit like if you bought a $1 million home in 2007 and want to sell it for $1 million today. One is slightly better and priced at $1 million, which you know from Zillow is what they paid for it in 2007. Another is slightly worse but priced at $700k and was bought in 2007 for $1 million.
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. I know because I’ve been there. Many term sheets ensued.
Altgate
DECEMBER 18, 2008
Let’s recap how expensive a 3x liquidation preference really is. Say you raise $8MM at $17MM pre-money ($25MM post) with a 3x participating preferred. Even companies that have countercyclical businesses are finding cash more expensive.
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