The order in which investors, or debt holders, get paid in the event of company liquidation or bankruptcy. Venture capitalists commonly use it to ensure they see a return on their investment in different liquidation scenarios, often stipulating a guaranteed minimum share price.
The order in which investors, or debt holders, get paid in the event of company liquidation or bankruptcy. Venture capitalists commonly use it to ensure they see a return on their investment in different liquidation scenarios, often stipulating a guaranteed minimum share price.
