Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Three years ago, you founded your own company. You invested $150,000 of your money and received 5.5 million shares of Series A preferred stock.

image text in transcribed

1. Three years ago, you founded your own company. You invested $150,000 of your money and received 5.5 million shares of Series A preferred stock. Since then, your company has been through three additional rounds of financing. Number Round Price ($) of Shares Series B 0.50 1,000,000 Series C 2.00 500,000 Series D 4.00 500,000 A) What is the pre-money valuation for the Series D funding round? (3 marks) B) What is the post-money valuation for the Series D funding round? (3 marks) C) Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round? (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Investment And Advisory Applications

Authors: Jesse McDougall, Patrick Boyle

1st Edition

1530116597, 9781530116591

More Books

Students also viewed these Finance questions

Question

Analyze this. describe the table and analyze it in paragraph form.

Answered: 1 week ago