How can you negotiate liquidation preference terms in a startup pitch deck?
If you are a startup founder seeking venture capital funding, you may encounter the term liquidation preference in your term sheet. This is a clause that determines how the investors get paid back in the event of a sale, merger, or liquidation of your company. It can have a significant impact on your returns and control over your business, so you need to understand and negotiate it carefully. In this article, you will learn what liquidation preference is, how it works, and how you can negotiate it in your pitch deck.
-
Momen ElsadyWealth Management Expert | Financial Strategist | Advanced Options Trader
-
Gabriele FenoglioInvestment Professional | The London School of Economics & Political Science
-
CA HENCY SHAH 🇮🇳🎓FCA | 🎓M.Com (F&T) | 💡16x LinkedIn Top Voice | 🖥️Information System Auditor | 🔍Certified Forensic Accountant…