Chasing waterfalls: understanding and negotiating liquidation preferences

Liquidation and sale preferences are downside protection for investors.

Do you know your convertible, non-participating preferreds from your double dips from your EIS-qualifying catch-up waterfalls?

In the Time of Corona – with capital now in much reduced supply – expect to see investor-friendly preferences worked into term sheets.

Our team put together a comprehensive guide on how venture capital preference mechanics work and where you can negotiate.

Humphreys Law

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