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Capitalization table with and without full ratchet AD protection Assume the founders of a company own 1 2 million common shares before a first -
Capitalization table with and without full ratchet AD protection
Assume the founders of a company own million common shares before a firstround venture capital financing. In the first round of external financing, Series A preferred shareholders buy million shares for $ share and receive a ownership stake. The company struggles and must sell an additional million Series B preferred shares for $share in a secondround financing two years later. Calculate:
a The postmoney valuation of the investee company after the Series A firstround financingn b The percentage of the company the Series A shareholders will own after the Series B financing if the Series A shares have no antidilution protection. c The percentage of the company the Series A shareholders will own after Series B financing if the Series A shares have fullratchet antidilution AD
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