Participating preferred permits VCs to give founders a valuation that seems higher than it in reality iskind of like the low standard payment on an auto lease vs. But if you are classy, participating preferred could be a way for founders and VCs to split the difference on an argument of how snappy / how successful a company will be. If the founders sell for a higher price than the preferences clear at ( presuming there’s a cap ) then maybe they were given a touch better valuation that otherwise.

But in my experience, like leasing an automobile, most of us and most times folk will come out better sticking to the straight and easy deal. Stock Investments Blog

Participating preferred permits VCs to give founders a valuation that seems higher than it in reality iskind of like the low standard payment on an auto lease vs. But if you are classy, participating preferred could be a way for founders and VCs to split the difference on an argument of how snappy / how successful a company will be. If the founders sell for a higher price than the preferences clear at ( presuming there’s a cap ) then maybe they were given a touch better valuation that otherwise.

But in my experience, like leasing an automobile, most of us and most times folk will come out better sticking to the straight and easy deal. Stock Investments Blog