This simulation shows how liquidation preferences affect the payout structure between VCs and founders at different exit values. Adjust the parameters to see how they impact the distribution of returns.
Investment Amount: The amount invested by the VC.
Liquidation Preference Multiple: Determines the preference amount (Investment * Multiple).
VC Ownership Percentage: The VC's equity stake in the company.
Participation: If off, VC gets the greater of preference or ownership %. If on, VC gets preference plus pro-rata share of remaining (capped at 100% of exit value).