{"id":9509,"date":"2026-08-03T18:33:13","date_gmt":"2026-08-03T16:33:13","guid":{"rendered":"https:\/\/www.quantum-partners.de\/glossary\/liquidation-preference\/"},"modified":"2026-08-03T18:33:13","modified_gmt":"2026-08-03T16:33:13","slug":"liquidation-preference","status":"publish","type":"b5_glossar","link":"https:\/\/www.quantum-partners.de\/en\/glossary\/liquidation-preference\/","title":{"rendered":"Liquidation Preference"},"content":{"rendered":"

The liquidation preference governs the order and amount in which investors are served from the proceeds ahead of other shareholders on an exit or a liquidation. The market standard is a 1x non-participating preference (the investor receives the greater of its investment or its pro-rata share).<\/p>

Participating or tiered (multiple) preferences strengthen the investor\u2019s position at the expense of founders and employees. The liquidation preference is closely linked to anti-dilution, vesting and the waterfall logic and is decisive for the actual payout at exit.<\/p>","protected":false},"excerpt":{"rendered":"

The liquidation preference governs the order and amount in which investors are served from the proceeds ahead of other shareholders on an exit or a liquidation. 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