Venture Deals · glossary

Liquidation preference

The right of a preference share to be paid back first when the company is sold or wound up. Solaris’s preferences are one times the money paid, and non-participating. A preference decides everything at a low sale price and nothing at a high one, when every class converts. Article 5 · Chapter 9

Explained in Chapter 9, Preference Shares and the Stack, of Venture Deals.

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