Instead of pure common equity, why do venture capitalists always insist on receiving some form of preferred stock in exchange for providing funding to a start-up firm? O Preferred carries extra voting rights and a special tax exclusion of dividends of up to 70% AVC's horizon is typically too short for their common stock to become yested o Preferred mimics the payoff structure of debt. which Vcs like better than common cquity It has priority over common stock in case of liquidation or sale of the firm It pays a promised dividend that can only be suspended if common dividends are suspended