Liquidation Preference
What is a liquidation preference? How does it effect the amount of money that returns to your investor? When do they choose to exercise this or not? What does the basic math look like? What's a cap and how does that work?
What is a liquidation preference? How does it effect the amount of money that returns to your investor? When do they choose to exercise this or not? What does the basic math look like? What's a cap and how does that work?
Пікірлер: 8
Thanks a lot, simple and straight to the point
Great explanation of a complex subject
Fantastic explanation, thanks a lot.
Brilliant series !
when you have cap of 3X and you don't want exercise the case shouldn't the preferred shareholder first take the 5 millions and then splits 50%-50% because the preferred shareholder gets paid before the common shareholder? i know that preferred shareholder are more superior to all and has more advantages than the rest.
Question: even though you put no participation for the second example, I think the math you showed was for participation with 3x cap. I might be wrong but wanted to get your perspective.
@anshitaagarwal9807
4 жыл бұрын
Yes, it is an example of 1x Liquidation Preference participation with 3x participation cap.