[agentgt]

> Investor liquidation preference guarantees investors get their money back 1x or 2x or 3x or whatever (assuming they don't lose all of it).

I haven't looked into the walmart/jet deal but one hangup on this assumption is very often the entity purchasing was the entity that invested initially in the first place (directly or indirectly).

That is they are just moving money around and buying something they already own (either directly or indirectly and in some cases very very indirectly).

[dave_sullivan]

Hmmm, I don't think they'd forgive liquidation preference in that scenario. I can think of a few specifically that I won't name where that's exactly what happened. The big co co-invests with other VCs, who put together the terms. The big co (or rich celebrity entrepreneur) wants the capital gain; it's not just moving money around.