👋 Hi, I’m Andre and welcome to my newsletter Data Driven VC which is all about becoming a better investor with Data & AI. Join 34,450 thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
ICYMI, check out our most read episodes:
Brought to you by VESTBERRY - Portfolio Intelligence Platform for Data Driven VCs
Download this free template and create a comprehensive overview of your portfolio directly in Notion.
Our Notion template allows you to consolidate essential portfolio information in a tool many VCs love. Fuel any ad-hoc decision or LP discussion with portfolio data, accessible from anywhere through mobile or desktop.
Seed Round Liquidation Preferences Stay Standard
Peter Walker’s LinkedIn post analyzes current norms in early-stage venture deals, showing that seed and Series A rounds overwhelmingly use 1× non-participating liquidation preferences. He notes this consistency as evidence that founders shouldn’t fear hidden investor-unfriendly terms at these stages.
1× Non-Participating Remains Standard: Seed and Series A deals almost universally feature 1× non-participating liquidation preferences, with no cumulative dividends, keeping founder and investor interests aligned.
Bridge Rounds Often Have Tougher Terms: Bridge or extension rounds can include higher liquidation preferences, reflecting the higher risk for investors when companies raise unplanned interim capital.
Later-Stage Rounds Diverge: More mature rounds often include investor-friendly terms such as participating preferences or higher multiples, but these are not standard at seed.
✈️ KEY TAKEAWAYS
Early-stage funding rounds maintain simple, founder-aligned terms. Seed deals with preferences above 1× non-participating should be seen as warning signs.
Typical Age of Unicorns at IPO or Acquisition
Subscribe to our premium content to read the rest.
Become a paying subscriber to get access to this post and other resources from the exclusive Data Driven VC community.
UpgradeA subscription gets you:
- Lists of 312 Family Offices + 59 Pension funds + 1513 angels
- Annual ticket for the virtual DDVC Summit
- Access our archive of 300+ articles
- 1 new premium article per week
- Virtual & physical meetups
- Masterclasses & videos
- Access to AI Copilots
- Prompt Database
- ... and lots more
