participating liquidation preference

2 statements across 2 episodes · 0 bullish · 2 bearish · 1 people on the record · first statement Jun 14, 2019 by Scott Kupor · across every show →

Everything said about participating liquidation preference, oldest first

Jun 14, 2019 negative
Opinion
Participating liquidation preferences are fundamentally unfair to founders
“Fundamentally, you know, and I say this in the book, like, I think that's very unfair to the entrepreneurs and to the common shareholders, because liquidation preference is really intended to protect your downside, and so it's not obvious to me.”
Scott Kupor Jun 14, 2019 ▶ 15:58 How to Raise Money from a Venture Investor
Jun 23, 2019 negative
Assertion Supported
Kupor: Participating Liquidation Preferences Are Rare in Silicon Valley Deals
“Now, participating is slightly different, and it's actually much more advantageous to the venture capitalist, and quite frankly, deleterious for the entrepreneur. We generally do not see it very often, particularly in Silicon Valley, but it's good for you to u…”
Scott Kupor Jun 23, 2019 ▶ 6:49 The Economics of Term Sheets
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