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clamorcod

3 karma · joined October 18, 2019

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clamorcod··on Understanding startup equity basics (for job seekers)
All totally good points. I can make this even more complicated!

>If the company has raised $100MM, there is very likely at least a $100MM preference. That means that if the company exits for $90MM the common shareholders (that's the employee option holders) will get nothing.

In this case, won't blocking rights prevent that exit in most cases? Investors with liquidation preference might not want an exit that comes in lower than their cost basis...