Liquidation Multiplier

A Liquidation multiplier is a term that allows investors to receive a multiple of their liquidation preference in the event of a liquidity event.An investor with one million shares of Series B preferred stock with an original issue price (OIP) of $1.00 would have a liquidation preference of $1 million. However if the same investor had shares with a liquidation multiplier of 2x, their liquidation preference would be $2 million.

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