Liquidation preference: what 1x non-participating means
Your startup sells. Who gets paid first? A 1x non-participating liquidation preference lets the investor choose between getting their money back or taking their percentage share, never both. One worked example shows why it protects them in a small exit and stops mattering in a big one.
Illustration only. Conditions apply. Not tax, legal or financial advice. Sources: HSBC Innovation Banking; Ashfords LLP.
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