[PeterFBell]

I saw it around the dot-com days along with a lot of other extremely dubious terms for extremely desperate founders - at least in NYC.

Agreed that more than a 1x liquidation preference these days would generally be surprising, but in a low end scenario or with a few big rounds, all it takes is a 1x to wipe out any upside for founders and employees, but if you're deemed worth it, the acquiring company can offer you a worthwhile incentive to stick around.