They almost definitely have liquidation preferences on that 2B.

> They almost definitely have liquidation preferences on that 2B

Automatic conversion clauses typically force convertible pref to convert to common in the event of an IPO. This makes liquidation preferences generally irrelevant to public offerings.

You can define arbitrary preference rules. For example, the conversion doesn't have to be 1-to-1.

In the case of Square's IPO, Series E preferred had a provision giving them extra free common stock to make up the gap if it IPO'd below $18.55 (which it did).

You can, and I may be wrong here, but I seem to recall that one has to call out these sorts of options in the S-1. It is material to people investing in the IPO.

Well that's a different thing than what the OP claimed (marking up an investment with a tiny secondary round). They marked it up with a giant round!

>marking up an investment with a tiny secondary round

Maybe a $2B round is tiny in the face of annual losses of $1.9B which was 2x the loss from the year before.

Who really knows anymore, maybe doubling your losses is just another metric VCs can spin as positive growth. After all the Unicorn IPO mantra seems to be, but we can stop our billion dollar losses whenever we want and then its all profits.