Tag Archives: Particpating Cap

Partially Participating Preferred: An Alternative to Participation Caps

In an earlier blog (Capping Preferred Participation: A Compromised Compromise) I argued that the usual middle ground between entrepreneur-friendly “non-participating” preferred stock and investor-friendly “participating” preferred stock – capping participation at some multiple of an investor’s base preference – is … Continue reading

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Capping Preferred Participation: A Compromised Compromise?

One of the more material, contentious and potentially confusing issues in negotiating venture capital term sheets is the structure of the so-called liquidation preference.  Perhaps better thought of as the “exit preference” this is the term that spells out how … Continue reading

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