Answer each question within a paragraph or two

1. Lets say you invested $250K in a convertible note during the seed round of a startup. The note had a $12M cap and a discount of 30%. At Series A, the startup raises money at a $15M valuation (To avoid confusion, consider this Pre-Money). Would the discount or the cap apply on your convertible note? Please include your formula below. 2. Recently an investor said, No one over the age of 40 should be in VC. Explain this rationale. 3. Why is a strategic buyer willing to pay more vs a financial buyer during an acquisition? 4. What is the expansion multiplier when discussing valuations and how does that impact a companys exit valuation?

Question

Answer each question within a paragraph or two

1. Lets say you invested $250K in a convertible note during the seed round of a startup. The note had a $12M cap and a discount of 30%. At Series A, the startup raises money at a $15M valuation (To avoid confusion, consider this Pre-Money). Would the discount or the cap apply on your convertible note? Please include your formula below. 2. Recently an investor said, No one over the age of 40 should be in VC. Explain this rationale. 3. Why is a strategic buyer willing to pay more vs a financial buyer during an acquisition? 4. What is the expansion multiplier when discussing valuations and how does that impact a companys exit valuation?

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Answer each question within a paragraph or two 1. Lets say you invested $250K in a convertible note during the seed round of a startup.

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