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Deal Terms & Legal
Participating preferred
A preference where the investor gets their money back AND shares in the rest — 'double dipping'.
Why it matters
It can dramatically cut what founders take home in smaller exits; pushing for non-participating is worth real effort.
Hear it from people who've done it
Get the real-world version of "Participating preferred" drawn from hundreds of conversations with founders and investors.
Ask the Network →Go deeper
Episodes on Venture Capital
First Cheque with Cheryl Mack & Maxine Minter · 3 August 2026
Eric Ries on What Investors Get Wrong About Governance
Investment Thesis with Kali Norman · 24 July 2026
Alex Khor's Investment Thesis
First Cheque with Cheryl Mack & Maxine Minter · 20 July 2026
What Makes a Founder Worth Backing at Pre-Seed? With Ilana Elbaz | GTM at Deel
Related terms
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