Author: Noah Gross

With participation, they don’t have to make that choice and can get their preference while also participating in any common. Essentially, these series are double-dipping! This significantly juices the preferred returns of these participating series and reduces the non-participating preferred series and common returns.

In the first installment of our Liquidation Guide, we showed how to calculate liquidation under the cleanest scenario, with Non-Participating Liquidation Preference and No Seniority (the base case). Today, we’re going to explore how things change when we add seniority to a cap table.