Power Shift in Startup Land

Liquidation preference is one of the most widely accepted and bizarre ideas in all of startup land. As a quick refresher, preferred stock with a liquidation preference is essentially a guarantee for investors. As opposed to common stock, it gives a bigger share of the pie to investors, and it means that founders and employees are sometimes left with very little in the event of a sale. That might seem strange, that the person who benefits most in the case of an exit is…
 

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