Mastery card

I can explain Participating Preferred

Preferred gets liquidation preference AND shares leftover.

Participating preferred receives its liquidation preference and then also shares in remaining proceeds with common - a ‘double dip’ unless capped.

Sticky trick

Negotiate caps or non-participating preferred when possible.

Take into the room

In plain English, what is Participating Preferred?

Or start your own 5-word trail from home.