is it the same as if the SPAC bought the equity? if a company IPOs, my understanding was that all options get converted to shares, regardless of preference. if a company gets purchased, the investors cash out at liquidation multiples and the remainder gets distributed to the common (employee peasant) pool. So if a company has: 500 VC options @ 4x preference @ $1 ea. 500 common stock and company sells for $2500. VC gets $2000, employees gets $1/share. in these new SPACs, do these liquidation prefs still apply? Sounds like common stock might get screwed vs an ipo where VC + common are treated equally?
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