Preferred Stock

Liquidation preference determines who gets paid first when a company is sold. This article explains the hierarchy of payout, the risks of the ‘double dip,’ and how it protects investors.

Preferred stock grants investors payment priority over founders. Understand the mechanics of liquidation preferences, control rights, and the difference between common and preferred equity.

A priced round is where a startup sets a specific valuation. Investors buy shares at a fixed price, establishing clear ownership percentages and formalizing the company structure.

A Cap Table tracks who owns your company. This article defines the term, breaks down its components, and explains the critical role it plays during fundraising and exits.

Common stock is the standard unit of ownership for founders and employees. It offers voting rights but holds lower financial priority than preferred stock during a company exit.

An overview of pay-to-play provisions detailing how they compel investors to participate in future rounds or forfeit rights, specifically during challenging financial periods.