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
preferred stock
When evaluating startup opportunities in the private market, it’s easy to focus solely on product innovation or founder charisma. However, a company’s use of financial instruments can influence growth, risk exposure, and exit outcomes. Among the most common are common … Continue reading
What Is Equity Dilution, and How Does it Work Within Startups? We’re Breaking It Down In the midst of growing a company and all that entails, issues like equity dilution may seem too far off to worry about for many … Continue reading
Investing in startups can be an intricate venture. Understanding funding rounds may be important for investors looking to support early-stage companies while also aiming to meet their investment goals. From Seed rounds to Series C and beyond, each phase can … Continue reading
Everything Investors Should Know About Liquidation Preference In the world of startup financing, one term that can stand out is “liquidation preference.” This aspect of venture capital can influence how the proceeds from a company’s sale, merger, or liquidation are … Continue reading
Preferred stock is a financial instrument used to help raise funds in the private market. Typically, preferred stockholders receive a priority claim over dividends and distribution of company assets in the event of liquidation. Some investors may favor the priority … Continue reading
There are two types of equity: preferred and common. You should understand the differences between the two to fully weigh the pros and cons of each. Note that there are no absolutes in private equity. Issuing stock often involves negotiated … Continue reading
