DISQUS

Altgate: How Liquidation Preferences Work

  • Kishore · 8 months ago
    In the first case i.e. (1) 1x preference w/ no participation: "Well, imagine if the company were sold for $15MM—in that case the VC would take the $10MM preference which would mean they really own 75% of the economics (not the 40% shown on the cap table)", wouldn't 10MM off 15MM come to 2/3rds i.e. 66.7% instead of the 75% you gave?
  • fnazeeri · 8 months ago
    Yes, thanks for the comment. I've fixed the post. And thank you for reading!
  • lopsop · 3 months ago
    This is extremely useful! Thanks so much for creating this!