Question: Why is having a liquidation preference important to VCs: VC investments are high risk, and they want to protect their investment in the event the

Why is having a liquidation preference important to VCs: VC investments

Why is having a liquidation preference important to VCs: VC investments are high risk, and they want to protect their investment in the event the exit is not a big win Increases the likelihood that the VC receives at least some of their investment back Allows them to get paid back in the event of a successful exit and participate in the upside All of the above

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