Venture portfolio company exit waterfall: Key terms explained

Understanding how proceeds are distributed during a company exit is essential for private market funds, investors, and founders alike. As private markets continue to mature and deal structures become more complex, modeling hypothetical exit scenarios is critical for assessing potential portfolio value and supporting robust valuation workflows. A well-structured exit waterfall ensures all stakeholders are fairly compensated and that your exit strategies align with market standards.

Download the guide to discover: 

• What an exit waterfall is, why it matters, and how it provides a structured framework for distributing proceeds among investors, founders, and employees during an exit event. 
• Clear definitions and practical examples of essential terms—liquidation preference, participation rights, seniority, conversion ratios, cumulative dividends, warrants and options, catch-up clauses, and more. 
• An Aumni exit waterfall in action with a step-by-step walkthrough of a sample scenario, including how ownership, distributions, cap tables, and economic terms are automatically extracted and modeled. 
• How Aumni’s tools extract and structure data from venture transactions and legal agreements, empowering your team to model exit scenarios with accuracy and efficiency.