Convertible Preferred Shares

Liquidation Preference Mechanism

Anti-Dilution Mechanism

Board Seats Mechanism

M&A / Liquidation Event

Investor recovers original capital first. Establishes Floor Return.

Subsequent Down Round

Adjusts conversion price; Investor gets more shares. Protects Investor Equity %

Strategic/Operational Need

Investor controls risk & guides strategy. Increases Exit Probability.

Management Retention

Ensures long-term team commitment. Increases Exit Probability.

Input 1: Anti-Dilution Outcome (Share Count Adjustment)

Input 2: Governance & Vesting (Team Stability)

Output: Determines final Investor Stake Size and Founder Control Level

Output: Exit Terms

Input 1: Exit Terms (IPO Prioritized)

Input 2: Floor Return from Liquidation Preference

Final Outcome: MAXIMIZES INVESTOR RETURN

Trend Data Collection (Online & Social Media Platforms)

On-Demand Manufacturing (Small Partner Factories in China)

Quality Control & Packaging

Global Distribution Centers (US, Europe, Singapore)

E-commerce Platforms & Mobile Apps

Consumers (Over 150 countries)