1. In venture capital, the right to receive a specific value for the stock if the business is liquidated.
2. More generally, the order in which creditors are paid off if the business is liquidated.
Related information about liquidation preference:
- Liquidation Preference Definition | Investopedia
A term used in venture capital contracts to specify which investors get paid first and how much they get paid in the event of a liquidation event such as the sale of ...
- Liquidation Preference | Glossary | VC Experts
Liquidation Preference Definition. ... The trigger for the payment of the Liquidation Preference is a sale or liquidation of the company, such as a merger or other ...
- Beware the trappings of liquidation preference | VentureBeat
Aug 16, 2010 ... (Editor's note: Scott Edward Walker is the founder and CEO of Walker Corporate Law Group, PLLC, a law firm specializing in the representation ...
- Term Sheet: Liquidation Preference
Jan 4, 2005 ... I've written about liquidation preferences (and participating preferred) before, as have most of the other VC bloggers (and several entrepreneur ...
- A VC: Here's Why You Need A Liquidation Preference
Aug 6, 2010 ... I get a lot of heat every time I mention that I won't invest without a liquidation preference. People say that it means I don't want to take a risk.
- Liquidation Preference (my case for 2x, non-participating) - Gabriel ...
May 1, 2010 ... The one term we slightly modified from the model term sheet was the liquidation preference. As I seem to be at odds in this change with people ...
- Liquidation Preference | Startup Lawyer
The liquidation preference is payable on either a liquidation of the company, asset sale, merger, consolidation or any other reorganization resulting in the ...
- What is liquidation preference? definition and meaning
Definition of liquidation preference: In venture capital, the right to receive a specific value for the stock if the business is liquidated.