We clicked on Series B and changed its Liquidation Preference Multiple from 1X to 2X. We made the same change for Series A. We could have also entered the liquidation preference as an amount per share, as some term sheets and stock purchase agreements designate, and the system would have recognized it.

Instantly, as we made the changes, outcomes for Series A, Series B, and Series C shareholders were displayed, as well as the reduced proceeds available for vested option holders and founders.

In some cases where multiple liquidation preferences exist, specific dollar amounts will be reserved, or “carved out” for management and founders at prices where the liquidation preferences would cause key personnel holding common stock to be left with nothing upon the sale. Clicking the edit detail button would further adjust the proceeds in cases where such a reserve for management was triggered.