Liquidation preference practices in French Tech
A data-driven analysis to help founders and investors better understand the economic impact of these clauses and make more informed equity decisions.
- An analysis of the practices observed in French Tech in 2025
- A clear explanation of liquidation preference mechanisms
- A breakdown of standard clauses and those that remain unusual
- Contextual information on how these practices have evolved compared to the previous year
- Quantified scenarios to understand the actual economic impact at exit
- A focus on the factors that most influence the value of common shares
This report will help you gain a better understanding of the following:
- Read a liquidation preference clause within a real economic framework.
- Identify what is considered market standard and what deviates significantly from it.
- Understand the actual impact of certain often-underestimated parameters.
- Anticipate economic effects across various exit scenarios.
- Better position your equity choices within a real market context.
Liquidation preference clauses structure nearly all fundraising rounds in French Tech and determine the order of value distribution at exit. Yet they are rarely analyzed holistically, leading to equity decisions made without clear benchmarks.
At Sovalue, we have completed over 250 business valuations since 2023, giving us direct insight into shareholder agreements and their concrete impact. This report aims to show current practices and provide founders and investors with keys to better understand these mechanisms.
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