Venture Deals · glossary
The sum a preference share is paid first: the money actually paid or lent for it, not the shares times the issue price. After the Series B the Series A class carried €2,600,000. Definition of Preference Amount · Chapter 9
Explained in Chapter 9, Preference Shares and the Stack, of Venture Deals.
One term survives conversion and later decides real money. When capital is returned, for example on a winding up, a preference share is paid a set sum before the ordinary shares. That sum is its preference amount, and the agreement fixes it for the Seed shares.Read Chapter 3, SAFEs and Advance Subscriptions →
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(amended on the Restatement Date) in relation to each Preference Share, the amount actually subscribed or advanced to the Company for that share (and not the number of shares multiplied by any issue price), together with any declared but unpaid dividend on it. As at the Restatement Date the Preference Amounts in aggregate are €4,000,000 for the Series B Shares, €2,600,000 for the Series A Shares (being the €2,800,000 originally advanced for 3,000 Series A Shares, less the €200,000 advanced for the 200 shares which converted into ordinary shares under clause 18) and €500,000 for the Seed Shares;Read the definition in the document →
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