Equity Waterfall
Exit-proceeds distribution: preferences → catch-up → pro-rata.
Rendering…
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flowchart TD
Proceeds[Exit proceeds] --> Debt[Repay debt + closing costs]
Debt --> Liq["Liquidation preference<br/>(preferred stockholders 1x)"]
Liq --> Caught{Preferences satisfied?}
Caught -- no --> Stop[Common gets $0]
Caught -- yes --> Catch["Catch-up<br/>(common reaches pro-rata)"]
Catch --> Pro[Pro-rata distribution\nto all share classes]
Pro --> Options[Less option pool exercise]
Options --> Final[Final per-share payout]