Comment Comment by hackaflocka Great article. Would love a simple, colloquial explanation of the following phrases:* $1 million as a note with a $5 million cap and a 20% discount.* senior liquidity preference of 1x to protect their downside since they feel the valuation is rich* Peter, is stoked that he is getting his $1 million investment converted into roughly 20%* senior 1x liquidation preference* the preference overhang of $211 million* They ask prior investors to recap* the ‘overhang math’.* senior preference and a 2x guarantee.* waterfall spreadsheet parent hackaflocka 11 years ago
* $1 million as a note with a $5 million cap and a 20% discount.
* senior liquidity preference of 1x to protect their downside since they feel the valuation is rich
* Peter, is stoked that he is getting his $1 million investment converted into roughly 20%
* senior 1x liquidation preference
* the preference overhang of $211 million
* They ask prior investors to recap
* the ‘overhang math’.
* senior preference and a 2x guarantee.
* waterfall spreadsheet