Distribution Waterfall
Definición
The distribution waterfall is the order in which exit proceeds are paid: debt first, then liquidation preferences by seniority, then common shareholders, with participating preferred complicating the flow.
Cómo aparece en el fundraising
Founders model the waterfall before accepting terms: in modest exits, preferences determine whether common stock receives anything at all.
Preguntas frecuentes
Why can a $40M exit pay founders little?
If the company raised $35M with 1x preferences, investors take $35M first; the remaining $5M splits among common holders and options.
What makes a waterfall founder-friendly?
1x non-participating preferences, pari passu between series, and total capital raised kept proportional to realistic exit sizes.
Términos relacionados
Pon este término en práctica
Las definiciones solo ganan negociaciones cuando estás en una. Encuentra los inversores que financian tu etapa y empieza la conversación.
Explora la base de datos de inversores