Venture Capital Terms: Liquidation Preferences - Critical to Your Success

Liquidation Preferences can define the Return You Make On Exit - Ignore this Critical Term Sheet Issue at your peril!

   Watch Promo

Imagine you are a Founder and you are negotiating a Term Sheet with an investor, perhaps a Venture Capital investor.

What do you think is the most critical part of the Term Sheet after the valuation?Right, Liquidation Preferences.

These sound harmless enough, but what if I called the term, "“How the investor gets all their money back first and you may get nothing” That would get your attention, wouldn't it.

You ignore Liquidation Preferences at your peril as you define the terms of your exit return when you agree these investment term sheets with investors.Don't forget everytime you accept external equity investment, you are giving up part of your exit return to them.The terms on which you do this are critical to how much you will make at exit

And they are looking to minimise their risk at your expense.

This is not actually unreasonable but you need to be able to understand the issues involved in Liquidation Preferences so that you can negotiate them successfully and get the best possible deal for yourself and your other existing investors.

In this Course we will discuss:

  • Liquidation Preferences: Why are they important?
  • What are liquidation preferences?
  • The Difference between Ordinary Shares and Preferred Shares
  • UK SEIS and EIS Schemes and Liquidation Preferences
  • Types of Liquidation Preferences
  • Rights of Conversion to Common Stock
  • Dead Zones
  • Seniority in Future Financing Rounds
  • How Can Liquidation Preferences affect your returns?
  • Should You Offer Liquidation Preferences to Investors

This is not an issue you can afford to be ignorant about.If you are, then your new investors will capitalise on your ignorance at your expense.

Nothing in this course offers financial or legal advice.For this you must go to your own legal and financial advisers.

Enroll today and make sure that you understand Liquidation Preferences!

Enjoy the course!

Best regards


Your Instructor

John Colley
John Colley

Exceed Your Own Potential! Join My Student Community Today!

Learn from my Expertise in Business, Online Marketing and Entrepreneurship!

Would you like to discover how I have become one of the top Udemy Instructors with a five figure annual US$ income just from Udemy and How You Can Too?

Would you like to find out how to turn your Udemy expertise into an Affiliate income?

Would you like find out how Startups can raise capital?

Would you like to discover Social Media strategies to make your businesses grow faster?

Do you want to learn the secrets of strategies of successful Business Development?

Do you want to make money working from home with Amazon FBA?

Are you afraid of Public Speaking?

You can do all this and so much more with my Udemy Courses!

Why are over 27,000 Students Enrolled in my Udemy Courses?

Here is a little bit about Me...

Cambridge University Graduate

I have a Bachelors and a Masters Degree from Cambridge University in the UK (Magdalene College)

Master of Business Administration

I graduated from Cass Business School in 1992 with an MBA with Distinction and also won the Tallow Chandler's prize for the best Dissertation.

British Army Officer

I spent nine years as a Commissioned British Army Officer, serving in Germany and the UK in the 1980s, retiring as a Captain. I graduated from the Royal Military Academy Sandhurst (Britain's West Point) in 1984.

Investment Banking Career

I have spent over 25 years working as an Investment Banker, advising hundreds of companies about Strategy, Fund Raising and Mergers and Acquisitions. My experience ranges from advising Start up companies through to Billion $ Global Corporations. I am a Fellow of the Chartered Securities Institute here in the UK.

Online Marketing and Social Media

I have been active in Social Media since 2002 when I was an early member of eCademy. Since then I have my own blog, a podcast, a video channel and now am a leading online course instructor.

My current Podcast, The Online Learning Podcast, dedicated to eLearning and Udemy can be found as a free course below.

Enrol in one of my Courses Today - Start your Success Journey with Me now!

I relish the opportunity to interact and engage with you to share ideas and inspiration! Please ask me any questions you might have about my courses - I may not have an immediate answer, but I will find it!

Because of my experience, I am also available for coaching/mentoring to people who have completed my courses and are putting their new skills to work on real projects. Contact me through Udemy or the links below my profile picture. I am here to help!

Come and join my "Online Learning Club" group on Facebook - interact with more passionate Life Long Learners! Just click on the Facebook link below my photo on this page and ask to join!

A Bit about Me!

I live with my wife in a 14th Century Medieval Hall house in Wiltshire in England with our Border Collie, Henry. I love wine, first edition books and vintage toy cars - quite keen on lego too! :)

How can I best serve you?

Join my community of over 69,000 Students, Enrol Today!

Frequently Asked Questions

When does the course start and finish?
The course starts now and never ends! It is a completely self-paced online course - you decide when you start and when you finish.
How long do I have access to the course?
How does lifetime access sound? After enrolling, you have unlimited access to this course for as long as you like - across any and all devices you own.
What if I am unhappy with the course?
We would never want you to be unhappy! If you are unsatisfied with your purchase, contact us in the first 30 days and we will give you a full refund.

Get started now!