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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

.   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. Second a liquidation preference and a participation.   First , dividends.

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Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. Anyone can create any number they want (within reason), as there is no one specific formula or metric for such work.

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Twitter Link Roundup #215 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

The Essential Email Marketing Metrics You Should Be Tracking | Hubspot blog – crowdspring.co/1gY786G. Good read for entrepreneurs & startup employees on liquidation preferences – crowdspring.co/1neVvzy. The Essential Email Marketing Metrics You Should Be Tracking | Hubspot blog – crowdspring.co/1gY786G.

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On the Road to Recap:

abovethecrowd.com

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” If you really want to liberate your own common shares and those of your employees, then you want to convert the preferred to common and remove both the control and the liquidation preference over your shares.

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