In This Issue:
- From the WSGR Database: Financing Trends for Q1 2015
- Price and Preference: Part 2
- Haves and Have Nots in Venture Financings
- Excerpt from Price and Preference: Part 2:
This is the second part of a two-part article1 on the importance of whether or not the preferred stock issued to investors in a venture financing participates upon liquidation. The first part discussed the marked shift from participating to non-participating preferred stock in recent years, which we theorized may be a consequence of an increasingly founder-friendly climate, plus possibly increased feeling among Series A investors that choosing non-participating preferred is in their own economic best interest. In this second part, we will explore why that feeling is correct.
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