Posts tagged as:

liquidation preference

Startup Funding: Should You Allow a Liquidation Preference?

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by Eric | Aug 6, 2010, 7:49am EST

Startup funding is all about the deal. As with many disciplines of finance, choosing the right terms for your startup can go in many different directions. Along with valuation, I cannot think of a single term more significant than the “liquidation preference.” I’m a big fan of Fred Wilson, and recently he weighed in on [...]

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Stock: Understanding a Liquidation Preference

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by Eric | Feb 28, 2010, 6:54am EST

A stock liquidation preference is one of the very most important aspects of getting your company financed, and you had better pay attention.  Many entrepreneurs have been shocked to find out just how both strong, and costly a liquidation preference can be.  If you find yourself fortunate enough to be negotiating a term sheet, please [...]

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