What rights do investors have in startups?
Investors in startups typically have rights such as voting rights, information rights, and liquidation preferences.
Can you explain what liquidation preference means?
Liquidation preference is a term that determines the order in which investors are paid back in the event of a liquidation or sale of the company.
Are there different types of liquidation preferences?
Yes, there are several types, including participating and non-participating preferences, which affect how returns are distributed.
How can these rights impact the startup's future?
These rights can influence funding rounds, control over company decisions, and the overall financial health of the startup.
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