# Participating Preferred

*Startups & Venture Capital — Finicade finance glossary*

Participating preferred lets an investor take their liquidation preference and then also share in what is left, as if they held common stock.

Participating preferred lets an investor take their liquidation preference and then share in the remaining proceeds as if they held common stock — colloquially, double dipping. Non-participating forces a choice between the two, which is far friendlier to founders and is the market standard in strong conditions. Participation reappears quickly whenever funding markets tighten.

**Also known as:** participating preference, double dip, non-participating

**Related terms:** [Liquidation Preference](https://finicade.com/glossary/liquidation-preference), [Preferred Stock](https://finicade.com/glossary/preferred-stock), [Exit](https://finicade.com/glossary/exit), [Cap Table](https://finicade.com/glossary/cap-table), [Down Round](https://finicade.com/glossary/down-round)

Source: https://finicade.com/glossary/participating-preferred