Skip to main content

Term Sheet

What is Liquidation Preference?

·535 words·3 mins
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.

What is Due Diligence?

·525 words·3 mins
Due diligence is the audit phase of a deal. This article explains what investors verify, how to prepare your data room, and why you must investigate your investors in return.