Light Preferred refers to a preferred stock structure that has relatively “light” investor protections and economics compared to more aggressive preferred terms (e.g., simpler liquidation preferences, fewer veto rights, limited participation). In pricing discussions, Light Preferred is often positioned as closer to common-like alignment, and Light Preferred terms may be used in founder-friendly rounds or competitive financings.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
