Giffon: Liquidation preferences trap founders who build heroic $30M revenue businesses
Jeremy Giffon · "There's a lot of stuck founders out there" - Jeremy Giffon breaks down the current state of VC. · Mar 9, 2025 · at 13:05
Investor Jeremy Giffon explains how liquidation preference stacks in venture capital can leave founders with minimal value despite scaling successful businesses.
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“Look, if you build a business to thirty million bucks for revenue, that's like a heroic feat. It's extremely hard to do. And then you somehow end up with eight percent of it under a two hundred million dollar press stack. That kind of sucks. And I don't think that's the outcome that anyone is like trying to have happen, but it happens as like a, as a kind of you know, a spandrel of the venture industry.”
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