Buzz Archive:
To Participate or Not (Participating Preferences)

by Bradley Feld, Managing Director and Jason Mendelson, Of Counsel, Mobius Venture Capital, 7/19/2005

What exactly are East Coast Terms? What defines a West Coast term? Who really decides--and does it matter?

In the conclusion of his two part series on hotly negotiated deal terms, former East Coast (now West Coast VC) Brad Feld tries to explain the notion of the participating preferred security, how it works, as well as its financial and emotional impact on a deal.