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What if you raised 500B and still got nothing? That can happen with 2x or 3x liquidation preference.

IDK FanDuel structure (not in article), but they only raised ~ 400M. Yet the investors got every dime up to 550+M.

From an investor standpoint, if I were risking that much momey on a high risk venture, I would want that kind of return to make it worth while and cover the others that don't make it.

That's the name of the game.

1x non participating is a fine way to offset some risk.

Anything more than that is greed.

From a founder/early employee perspective, if I were risking that much _literal lifespan_ on a high-rish venture, I'd want some kind of return to make it worthwhile.

You mean like a salary and benefits?

Nobody forces you to sign away these preferences and participation.

It might be a reasonable reflection of your pre-money worth (i.e. near zero) or it might not be.

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