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Dictionary by pitch.dog
Term-sheet economics · Core

Seniority

Also called: ranking

ELI5

Who gets paid or acts first.

Used in conversation

“The new money is senior to the earlier preferred stock.”

Definition

The order in which securities or claims rank for payment or rights.

Here “Seniority” means: The order in which securities or claims rank for payment or rights.

Pitch context

You will see “Seniority” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet economics.

Why it matters: In term-sheet economics, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.