You are in a VC partnership that has agreed to be a Series A investor in Dabble, an innovative dating app. You have agreed to invest $4 million ($10 million post-money valuation) for a 40% ownership. You are buying preferred equity that can be converted to common stock at your discretion.

• What is the best liquidation preference to include in your term sheet?
• Your team has done significant due diligence and you have assessed 4 possible outcomes