Venture Hype’s nice piece on flavors of stock

Venture Hype has put together two posts (part I, part II) helping to explain the differences between the different flavors of stock…

So unless they’re dying to get into a deal, sophisticated angels rarely purchase common stocks, as this type of equity offers investors little protection.

Unlike friends and family investors, professional angels don’t invest due to their warm, fuzzy feelings toward entrepreneurs; also, they invest hard cash as opposed to the founders’ and employees’ sweat equity. Thus, experienced investors want to protect themselves with rights that rank ahead of common shareholders.

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