What is typically the difference between a convertible nonparticipating preferred stock and a convertible participating preferred stock?

The participating preferred stock gets BOTH its liquidation preference AND a proportional share of the remaining exit proceeds.

The nonparticipating preferred stock does NOT receive exit proceeds above the value of the liquidation preference.

The nonparticipating stock does NOT get a board seat or other means of participating in management decisions.

The participating preferred stock DOES get a share of the liquidation proceeds in proportion to its ownership interest in the company.