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Post a RequestLiquidation Preference Definition
Liquidation preference – n : term included in many venture
capital financing agreements. States that the investors in a given round will
receive a set multiple of their investment before investors in earlier rounds
see any return. For example, investors in a B round deal with a 2x liquidation
preference would receive 2x their investment before investors in the A rounds
and earlier received a return.
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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