In a venture capital context, blended preferences means that preferred stockholders across all rounds have the same seniority status with respect to their liquidation preference. This is in contrast to stacked preferences, where follow-on investors stack their liquidation preference on top of earlier investors, such that the latest investors have liquidation priority. Blended preferences are thus more equitable for all investors.
Common stock does not sound exciting. Preferred stock does. First-time founders are looking for excitement—especially when it comes to their millions of initial shares—and so they’re often surprised to hear that they’ll be receiving common, rather than preferred stock when the startup is incorporated.