What is a liquidation preference cap?
The liquidation preference can also have a cap if it is a participating liquidation preference:...
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Category: Venture Capital Financing
How are accured and unpaid dividends applied to the liquidation preference?
The term of the liquidation preference will almost always say that it is for the original purchase...
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What is nonparticipating and participating liquidation preference?
As mentioned in the “Liquidation Preference 101” post, liquidation preferences can either be...
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How do you calculate price-per-share? What is fully-diluted basis?
The price per share of the Series A Preferred Stock that the venture capital investor is willing...
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What is pre-money and post-money valuation?
Before we start a discussion on the different terms of a venture capital financing, it is...
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A Sample Term Sheet for a Venture Capital Financing in a Technology Startup Involving Series A Preferred Stock
To set the ground work to begin a series of posts on the numerous different terms in a typical...
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What is liquidation preference?
A liquidation preference gives the preferred stock the right to get paid before the common stock....
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How do you determine valuation for a technology startup?
Understanding the valuation language: Pre-money vs. Post-money valuation Before we can start any...
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