Is it common for angel investors to ask for liquidity preference with participation?
In answer to @John
A liquidity preference is a clause that most Angel or VC investors ask for that states they will get paid out first if the company comes into money, i.e. from a buy out or a sale of shares
In answer to @rih yes it is very common
I believe it is quite common.
We initially took a small round from a couple of angels (< 5% each) and it was just common stock. Recently we took a much larger second round (> 10%) and it had liquidation preferences.