Private equity investing can offer opportunities, but it also comes with complex deal structures and nuanced terms that require careful evaluation. Unlike public markets, where terms are standardized, private equity deals are highly customizable, making it important for investors to … Continue reading
Liquidation Preferences
When an investor invests in an early-stage company, they may already be considering the various exit pathways that a startup could pursue. Some may consider an initial public offering (IPO) to be the ultimate goal, but what happens if the … Continue reading
No matter what funding round an investor decides to invest in, subsequent funding rounds can impact an investment. Each funding round a startup goes through after an investment is made has the potential to reduce the ownership stake, slowly chipping … Continue reading
When investing in private startups, an investor may come across the term liquidation preference. One important component of a term sheet, liquidation preferences help determine the order in which investors could get paid after a company experiences a liquidation event. … Continue reading
Liquidation preferences are an important investment term. Learn what they are, how they work, and how they can impact an investor’s overall returns. Continue reading
