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a a Consider a deal where the investor offers an investment of $2M at a post-money valuation of $8M for a start-up company. In return,

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a a Consider a deal where the investor offers an investment of $2M at a post-money valuation of $8M for a start-up company. In return, the investor requests convertible preferred stocks. Suppose the shares outstanding prior to this round of financing is 1.25M. How many shares will the investor receive? The term sheet features a dividend rate of D=8%. = What is the amount of the preferred terms? PT=[ + DIV=$2M + $2M * 8% = $2.16M Owhat is the conversion threshold? CT= PT/F = 2.16/0.25=8.64 Calculate the cash flows to preferred shareholders and common shareholders in each case when the exit value is $1M, $3M, $8M, $8.64M, $9M and $10M, respectively. a a Consider a deal where the investor offers an investment of $2M at a post-money valuation of $8M for a start-up company. In return, the investor requests convertible preferred stocks. Suppose the shares outstanding prior to this round of financing is 1.25M. How many shares will the investor receive? The term sheet features a dividend rate of D=8%. = What is the amount of the preferred terms? PT=[ + DIV=$2M + $2M * 8% = $2.16M Owhat is the conversion threshold? CT= PT/F = 2.16/0.25=8.64 Calculate the cash flows to preferred shareholders and common shareholders in each case when the exit value is $1M, $3M, $8M, $8.64M, $9M and $10M, respectively

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