Both Sides of the Table

SEPTEMBER 5, 2012

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. Convertible Notes Also Can Have Multiple Liquidation Preferences. Convertible notes often have multiple liquidation preferences. That’s right.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

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. 4 * $4 million) and not $4 million.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

abovethecrowd.com

APRIL 20, 2016

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. They use the reputation of the other investors as a proxy for due diligence. Why are they friendly now?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

SoCal CTO

JULY 13, 2010

Creating Incremental Strategic Value - Ask the Angels , June 17, 2010 We can easily overlook the level of demand pull when we are assessing strategic value. liquidation preference. Of course, having no reputation is usually better than a bad one, but don’t wait for someone else to establish a good one for you.

Cofounder 175

Cofounder Technical Cofounder Term Sheet Startup 175