Startup Investing

Non-Participating Preferred

Definition

What is Non-Participating Preferred?

Preferred shares that generally choose between the liquidation preference and conversion into ordinary shares.

Example in practice

The investor takes whichever outcome produces more value.

Keep learning

A preliminary document outlining the main commercial terms of a proposed investment.

A company's agreed value immediately before a new investment.

A company's value immediately after adding new investment capital.

The rate at which a company spends cash, commonly measured monthly.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.