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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 12 million common shares before a first-round venture capital financing. In the first round of external financing, Series A preferred shareholders buy 4.0 million shares for $1.00? share and receive a 25% ownership stake. The company struggles and must sell an additional 3.0 million Series B preferred shares for $0.50/share in a second-round financing two years later. Calculate:
a. The post-money valuation of the investee company after the Series A first-round 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 full-ratchet antidilution (AD)
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