Naïve Expectation
ownership × exit
Preference Stack
paid before common
Common Breakeven
exit where common gets paid
The waterfall at this exit
| Class | Chooses | Preference | As-Converted % | Payout | % of Exit |
|---|
Your proceeds across exit values
Where the preference stack stops mattering for you.
| Exit Value | Your Proceeds | Naïve (own% × exit) | Haircut |
|---|
Model: preferences paid newest-round-first (stacked seniority); non-participating preferred
takes the better of its preference or converting to common; participating preferred takes its
preference and shares in the remainder (no participation cap modeled). Ignores option pools,
escrows, carve-outs, debt, and transaction costs. A modeling aid, not investment or legal advice.