Glossary

Preferred stock

The class of shares investors receive in a priced round, with rights common stock does not have.

Preferences include getting paid first on an exit, anti-dilution protection and vetoes on major decisions. Founders and employees hold common stock.

Related free tool

Learn the words, then get the score.

A free Founder Starter account gives you SeedScope’s startup score, a risk assessment and a summary, and puts your profile in front of investors. Founder Pro adds the full valuation, exit odds and the investors who viewed you, by name.