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A comment on My company sold for $100M and I got zilch – how can that be?. Parent comment

Re:My company sold for $100M and I got zilch – how can that be? by tomrod on Friday October 25, 2019 @06:24PM (#21359840)
I think I am misunderstanding. Is liquidation rate basically interest?
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Re:My company sold for $100M and I got zilch – how can that be? by teej on Friday October 25, 2019 @06:29PM (#21359881)
Interest rate is something that gets regularly paid out on an investment.

Liquidation preference is something that typically pays out once when an illiquid investment (private company stock) becomes liquid (IPO or sells).

They both share aspects in that you are investing money up front but they have different rules to how you get a return on that investment.

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