Liquidation preferences help investors get their investment back when the startup is acquired or liquidated at a lower valuation.

When a startup becomes big, its early investors sell their shares to bigger VCs at a profit. This is called a liquidity event.

Carry, short for Carried Interest, is the share in profit that a fund manager (GP) gets when they investment does well.

Startup investing has become mainstream in India. More Indians will invest in early-stage startups once the ecosystem further matures.