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2 . There has been only one round of financing for Snype.com ( a Series A investment of $ 1 0 million in convertible participating
There has been only one round of financing for Snype.com a Series A investment of $ million in convertible participating preferred at a $ million premoney valuation If converted, the Series A investors would own of the company $M$M $M and the entrepreneur would own The company has an offer to be acquired for $M The Series A preferred shares have a liquidation preference of X and participate with a X cap. points Under thecapped liquidation preference how much money would the Series A investor receive? By converting to common stock, how much would the investor receive? So is it better to convert or take the liquidation preference?
There has been only one round of financing for Snype.com a Series A investment of $
million in convertible participating preferred at a $ million premoney valuation If
converted, the Series A investors would own of the company $M$M $M
and the entrepreneur would own The company has an offer to be acquired
for $M The Series A preferred shares have a liquidation preference of X and
participate with a X cap. points
Under thecapped liquidation preference how much money would the Series A
investor receive?
By converting to common stock, how much would the investor receive?
So is it better to convert or take the liquidation preference?
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