4 terms
Exit & liquidity
How money actually comes back — the waterfall, the secondary market, and the exits that are really hires.
Exit waterfall
Liquidation waterfall · Payout stack
The order in which sale proceeds are distributed — creditors first, then each preferred class by seniority, then ordinary shareholders — and the calculation that tells you what your shares are actually worth.
Read the term →Secondary sale
Secondary transaction · Direct secondary
The sale of existing shares by a shareholder to a new buyer, as distinct from the company issuing new shares — the main route to liquidity before a company exits.
Read the term →Redemption rights
Put rights
The right of preferred shareholders to require the company to buy back their shares after a stated period, usually at the original price plus accrued dividends.
Read the term →Acqui-hire
Talent acquisition · Acquihire
An acquisition whose purpose is to hire the team rather than to buy the product, typically priced per engineer and structured so that most of the value goes to employees as retention packages rather than to shareholders.
Read the term →