Venture Capital Critical Terms: Liquidation Preferences

Partner: Udemy
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Description: Imagine you are a Founder and you are negotiating a Term Sheet with an investor, perhaps a Venture Capital investor.What do you think is the most critical part of the Term Sheet after the valuation? Right, Liquidation Preferences.These sound harmless enough, but what if I called the term, "“How the investor gets all their money back first and you may get nothing” That would get your attention, wouldn't it?You ignore Liquidation Preferences at your peril as you define the terms of your exit return when you agree these investment term sheets with investors. Don't forget every time you accept external equity investment, you are giving up part of your exit return to them. The terms on which you do this are critical to how much you will make at exitAnd they are looking to minimise their risk at your expense.This is not actually unreasonable but you need to be able to understand the issues involved in Liquidation Preferences so that you can negotiate them successfully and get the best possible deal for yourself and your other existing investors.In this Course we will discuss:Liquidation Preferences: Why are they important?What are liquidation preferences?The Difference between Ordinary Shares and Preferred SharesUK SEIS and EIS Schemes and Liquidation PreferencesTypes of Liquidation PreferencesRights of Conversion to Common StockDead ZonesSeniority in Future Financing RoundsHow Can Liquidation Preferences affect your returns?Should You Offer Liquidation Preferences to InvestorsThis is not an issue you can afford to be ignorant about. If you are, then your new investors will capitalise on your ignorance at your expense.<b
Category: Business > Entrepreneurship > Venture Capital
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Price: 109.99
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Source: Impact
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