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    Preferred Stock

    Class of equity with rights superior to common stock.

    Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026

    Definition

    Preferred stock is the security class issued to venture investors. It carries a liquidation preference, anti-dilution protection, dividend rights, protective provisions (veto rights over key actions), and often board representation - rights not held by common stockholders.

    What this means in practice

    Each round (Series Seed, A, B, C…) typically issues a new series of preferred with its own preference and rights, stacked in reverse order of issuance.

    Cross-references

    Part of

    A larger framework or document this term belongs to.

    Primary references

    3 sources
    Link health: 2 verified 1 bot-blocked· last checked 2026-05-09
    NVCA·1SVB·1PitchBook·1
    1. 1
      NVCA model docs
      Verified
      NVCAnvca.org
    2. 2
      Silicon Valley Bank - Healthcare Reports
      Verified
      SVBsvb.com
    3. 3
      PitchBook - MedTech Coverage
      Bot-blocked
      PitchBookpitchbook.com

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