Liquidation preference in Dragons’ Den negotiation
Posted on 22. Oct, 2009 by admin in VCIC
Two shows I watch every week are Dragons’ Den (BBC) and Shark Tank (ABC). After watching a recent episode of Dragons’ Den, I was surprised by James Caan offering a liquidation preference as part of his offer using participating preferred stock. Typically in either show the negotiations are only focused on valuation with common stock.
In Dragons’ Den: Series 6: Episode 3 – 5 of 6, fast forward to 4:30 for the beginning of the pitch and negotiation.
It is the first time I’ve seen any Dragon or Shark refer to preferred stock type features. It was a very odd attempt, given that there were other offers at the same valuation without these features.
I’ll include this post in the VCIC section of our site in the hopes that teams prepare by watching some episodes before their events.
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