Understanding Your Investor’s Zone of Indifference

Founders need to understand investor priorities before they require investor action. The investor’s ‘zone of indifference’ describes an issue that can be problematic. In this episode, Heidi explains what it is, when it comes into play, and how to identify the likelihood of an investor landing in the ‘zone of indifference.'

 More information: https://www.threshold.vc/podcast/understanding-your-investorrsquos-zone-of-indifference

Further reading:

• As promised, here’s a post written by Evan Epstein about fiduciary duties of venture-backed directors. It’s a must read! https://evan-epstein.medium.com/duties-of-startup-directors-and-the-rule-of-common-maximization-9a2814b2fe2a
• And if you want to go deep on the seminal case on this topic, the Trados case, here’s an in-depth podcast about it with Evan and Vice Chancellor J. Travis Laster of the Delaware court: https://boardroom-governance.com/episodes/travis-laster
• Here’s a great primer on preferred stock: https://darroweverett.com/preferred-stock-primer-value-protective-provisions-analysis/#:~:text=Preferred%20stock%20sits%20between%20debt,liquidation%20events%20and%20dividend%20payouts"
• Here’s a breakdown of simple preferred versus participating preferred and how it impacts the zone of indifference: https://veecee.co/understanding-liquidation-preferences-and-the-zone-of-indifference