Archive | February, 2010

Understanding Liquidation Preferences

A liquidation preference is exactly what it sounds like, priority treatment for certain stockholders upon the liquidation, sale, merger, IPO or dissolution of a company.  It is a typical Series Preferred Stock right in venture financing transactions.  As I’ve stated in earlier posts, I believe that liquidation preferences are a top negotiating priority at the term sheet stage (I actually believe that this provision […]

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Scotty, We Need More Traction! Capt’n, What’s That Mean?

The lexicon and jargon of the venture world is a frequent topic of articles and posts.  It changes year-to-year, or with each up and down cycle.  In the mid to late 90’s the buzzwords were “eyeballs,” “paradigm shift,” “new economy,” “bricks-and-mortar” and the ever present “synergy.”  During the latter half of 2009 up to the present […]

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