Today on MBA Mondays Startup Financing Options series, we are going to talk about the financing option that I specialize in - preferred stock.
Almost all venture capital firms and many angel and seed investors will require the company they are investing in to issue them preferred stock. The vast majority of equity dollars invested in startups are securitized with preferred stock. So if you are an entrepreneur, it makes sense to understand preferred stock and what it means for you and your company.
Preferred stock is a class of stock that provides certain rights, privileges, and preferences to investors. Compared to common stock, which is normally held by the founders, it is a superior security.
To read the full, original article click on this link: A VC: Financing Options: Preferred Stock
Author:Fred Wilson
