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A start-up raises $10m in a Series A at a $15m pre-$ valuation. The company sells for $30m. a. How much will common shareholders receive
A start-up raises $10m in a Series A at a $15m pre-$ valuation. The company sells for $30m.
a. How much will common shareholders receive if the VC has a basic liquidation preference?
b. How much will common shareholders receive if the VC has a 2x liquidation preference?
c. How much will common shareholders receive if the VC has a participating liquidation preference?
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