Distribution, Metrics and Ratchet

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Distribution

Metrics

Ratchet

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

Tim Keane

JANUARY 12, 2010

A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders. The investor may also ask for a participation in which the investors receive some additional multiple of their investment prior to distribution of proceeds to stockholders.

Term Sheet

Term Sheet Valuation Dividend Liquidation Preference

On the Road to Recap:

abovethecrowd.com

APRIL 20, 2016

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” Examples of dirty terms include guaranteed IPO returns, ratchets, PIK Dividends, series-based M&A vetoes, and superior preferences or liquidity rights. The typical Silicon Valley term sheet does not include such terms.

IPO

IPO Term Sheet Silicon Valley Valuation

StartUpRoar

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

On the Road to Recap:

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