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by FreakLegion
315 days ago
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Yes. Preferred shares give investors their investment back first if things go wrong. If an investor gives you a million dollars for a piece of your company, and you turn around and sell the company for a million dollars, then the investor gets their million dollars back and you get nothing. Obviously. Any other outcome would be shenanigans. Under standard deal terms investors get 1x, i.e. their money back. That's all. |
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