Tag Archives: Liquidation Preference

The 3 deadly weapons (in term sheets) that Kill Entrepreneurs..

Rodinhood’s comment was that if VC means Venture Capital, it should remain Venture Capital and not Vampire Capital. Hence, the fair multiple was 1x of the principal back and NOT 2x or 3x etc, etc, in favor of the VCs. 1x ensured return of Capital and nothing more if the Company was sold in extraneous circumstances. Continue reading

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