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
Liquidation Preferences
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
