Liquidation Preferences in Startups
Liquidation preferences help investors get their investment back when the startup is acquired or liquidated at a lower valuation.
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- Sep 13
- 4 min
Angel Investing – Fees, Returns and the Power Law
The power law dictates that a lion's share of VC returns comes from a small number of deals while most investments fail to return capital.
- Aug 14
- 2 min
What is a liquidity event in angel investing?
When a startup becomes big, its early investors sell their shares to bigger VCs at a profit. This is called a liquidity event.
- Nov 21, 2022
- 2 min
ESOP for early employees
Startups give ESOPs to employees to compensate for the risk. ESOPs can yield a fortune if the startup you joined becomes successful.
- Sep 20, 2021
- 3 min
How have Indian VC funds performed?
VC investments are illiquid with 5 to 8 years lock-in depending upon the fund. Thus, it requires a higher return than most investments.
- Jun 7, 2021
- 2 min
Are we in midst of a startup bubble?
In the first 4 months of 2021, more Indian companies became unicorns (startups with at least $1 Bn valuations) than in the entire of 2020.
- May 24, 2021
- 2 min
How much money do you need to be rich in India?
You need $60,000 in net wealth (Assets – Liabilities) to be in the top 1 % of India which is 32 times the GDP/Capita in India.
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