If your investors have liquidation preferences, that's not true and can leave fo... | Hacker News

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msencenb on March 7, 2017 | parent | context | favorite | on: Stock options are complicated

If your investors have liquidation preferences, that's not true and can leave founders with nothing depending on the exit.

If there are no liquidation preferences, then you are correct.

harryh on March 7, 2017 [–]

sigh

I meant to write founders and employees. Not founders and investors. Sorry. Not sure I screwed that up. The screwup made my statement completely wrong.

Investors, as you helpfully point out, generally have preferred stock with liquidation preferences and hence are "first in line."

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