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Liquidation Preference Structure Spec
The founder (or counsel) has a complete, parameterized specification of the liquidation-preference stack ready to drop into a term sheet or shareholders' agreement.
You receive: A JSON object { series[], seniorityModel (enum: standard|pari_passu|tiered), seniorityOrder[], notes } where series[] is an array of { seriesName, investedAmount, liquidationMultiple, type (enum: non_participating|full_participating|capped_participating), participationCapMultiple (number|null), convertible (bool), tier (number|null) }
Part of Pitch Investors
What's verified: STUD verifies the spec covers every series, every type/multiple is in range and internally consistent (caps, tiers, seniority permutation). STUD does NOT decide whether the structure is fair, founder-friendly, or what a real investor would accept, and does NOT compute payouts (that is the separate waterfall play). Not legal advice.
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Example
A sample of what this play produces. Your result is generated for your inputs.
Series
| Series Name | Invested Amount | Liquidation Multiple | Type | Participation Cap Multiple | Convertible | Tier |
|---|---|---|---|---|---|---|
| Seed | 1000000 | 1 | non_participating | true | 3 | |
| Series A | 4000000 | 1 | non_participating | false | 2 | |
| Series B | 8000000 | 1.5 | capped_participating | 3 | false | 1 |
Seniority Model
tiered
Seniority Order
- Series B
- Series A
- Seed
Notes
Illustrative structure for STUD.com (pre-seed, unincorporated, sole founder Dan Schmitz; no committed raise, no investors, no cap table on file). Modeled on the illustrative $1,000,000 raise target (finance.raise_amount_usd) as a hypothetical future Seed preferred round, plus two hypothetical later rounds (Series A, Series B) shown only to illustrate a tiered seniority stack; a real future cap table would differ. Later rounds sit senior to earlier rounds (tier 1 = most senior, tier 3 = most junior). No investor or co-founder names are used. Not a term sheet and not legal advice.
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