PrivateTechSharesPari passu
Also called: pari-passu
In one line
A Latin term meaning different investors rank equally, so their claims are paid at the same time rather than one before another.
In plain English
When rounds are pari passu, no investor's liquidation preference jumps ahead of another's — they share the top of the waterfall proportionally. The alternative is 'stacked' seniority, where later rounds get paid first.
If you were explaining it to a 5-year-old
All the VIP guests are treated the same — they get their money back together, nobody cutting in line ahead of the others.
Why it matters when you sell
Whether preferences are pari passu or stacked changes who gets paid first at exit, and indirectly how much trickles down to common.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.