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Liquidation preferences make a difference to the math here. For example, a 3x liquidation preference would guarantee the investors the first $9 million of proceeds from any exit in the $3 million investment example.

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Liquidation preferences rarely kick in until later rounds. Most seed rounds are just 1x.

I know some late stage startups with multiple rounds where _all_ are 1x. Most likely ZIRP but still.

1x IS a liquidation preference. I very, very rarely see in excess of a 1x liquidation preference, regardless of the round.

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