Why this Angel Investor Hates Liquidation Preferences

And Why I Demand Liquidation Preferences, Too

DC Palter
Entrepreneurship Handbook
6 min readJun 14, 2022

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SAFE Note Liquidation Preference. Image by Author.

When negotiating investment terms with startups, there is nothing as contentious as the liquidation preference. And for good reason.

In the vast majority of startup exits, it’s the liquidation preference that determines how much investors get, how much founders and…

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Entrepreneur, angel investor, startup mentor, sake snob. Author of the Silicon Valley mystery To Kill a Unicorn: https://amzn.to/3sD2SGH