An investor is in negotiation with a start up to purchase $10 million worth of preferred stock. The investor is insisting that the security be a "participating preferred with a 4X preference." If the investment goes forward, the post-money valuation will be $40 million. As the CEO of the startup who has a significant equity position in the company, your reaction should, or would, likely be which of the following: The large multiple could cost me and other common holders money and will negotiate hard to get it down because it feels excessive ("too rich"). I'm indifferent to the large multiple because the preferred is participating, If we can increase our valuation four-fold by the time the investor exits, it will not matter to me and the other shareholders. As I firmly believe we will do this, I don't vier this term as economically significant