Startup Exit Strategy: Liquidation Preferences, Participating vs Non-Participating

Website Link Below:
https://get.firstbase.io/xa008h6rktb8

Liquidation preferences can make or break your exit as a startup founder. In this video, we break down what liquidation preferences are, the difference between participating vs. non-participating preferences, and how they affect founder equity and investor payouts during a company sale, merger, or IPO.

We’ll cover:

What liquidation preferences actually mean

1x vs 2x liquidation preference (with examples)

Participating vs non-participating preferences

How preference stacks work across multiple funding rounds

Why valuation caps, convertible notes, and investor terms matter

Regional trends (US vs Europe vs Asia)

Tips for negotiating founder-friendly terms

If you're raising capital or preparing for an exit, understanding liquidation preferences is non-negotiable. Learn how to protect your equity and negotiate better terms with this Firstbase funding guide.

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