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Cap Table (6 points) In a seed round of raising capital, an angel investor provided a $500,000 convertible note with a 10% interest rate, a
Cap Table (6 points)
In a seed round of raising capital, an angel investor provided a $500,000 convertible note with a 10% interest rate, a discount rate of 20% and a cap of $3 million. In the Series A round that followed 365 days later, a VC firm invested $2 million with a pre-money valuation of $5 million. In the Series A round, the firm had 20,000,000 shares (fully diluted).
- In the Series A round, what is the per share price for the Series A investor (VC firm)? _____________________________________________________________________________
- In the Series A round, what is the per share price for the Angel? _____________________________________________________________________________
- If these prices are different, explain why? _____________________________________________________________________________
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