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Venture-Capital
Definition
Venture-Capital
Explained
Venture-Capital
Interview
Venture Capital
News
Venture Capital
For Dummies
Venture-Capital
Meaning
Venture-Capital
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Venture-Capital
Returns
Venture Capital
Firms
Andreesen Horowitz
Capital
1 Venture
Venture-Capital
vs Private Equity
Venture
Capitalismm
Sequoia
Capital
Venture-Capital
Podcast
How Does
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Venture-Capital
Trends 2023
Venture-Capital
Jobs
Capital
Equity
Entrepreneurship
Venture Capital
Funding
Y Combinator
Venture
Assets
Angel Investor
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A company sold for $60 million. The founders got zero. Not because the deal was bad. Because of where they sat in the waterfall. The VCs held preferred stock with liquidation preferences. They get paid first when a company sells. By the time the proceeds reached the founders and common stockholders, there was nothing left. And when the founders sued, the court ruled the deal was fair. Zero was the fair value of their shares given the structure in place. Here's the mechanism that made it airtight
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