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How does Preferred Stock work?

As a non-lead investor investing a small amount, the essential terms to pay attention to are the Post-Money Valuation or the Pre-Money Valuation. This is what the company is considered worth; with it, you can calculate your percentage ownership. Comparatively, the price of the stock is relatively meaningless.

Most priced round contracts for venture-backed companies are based on the National Venture Capital Association templates. 

Read more about the NVCA documents.
Learn more about terms.

Can't find what you're looking for?

Email us: support@wefunder.com