Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following VC Method Case Founder has 1 , 0 0 0 , 0 0 0 shares of firm. Founder expects to raise two
Consider the following VC Method Case
Founder has shares of firm.
Founder expects to raise two rounds of financing before an exit in years. Exit valuation TV at that time is estimated as $
Series A funding today reguires M in additional funding, years before exit. Series B funding after years reguires M in additional funding, years before exit.
To account for the various risks, use discount rate for the first years, and for the last three years.
a What is the ownership to Series A investors after that found. Enter answer as a to decimal places
b How many new shares were will be issued to Series A investors after that found. Enter to nearest number of shares. Do not round intermediate results.
c What is the ownership to Series B investors after that found. Enter answer as a to decimal places
d How many new shares were will be issued to Series B investors after that found. Enter to nearest number of shares. Do not round intermediate results.
e What s the compounded annual rate of return series A investors will receive if all projections are realized. Enter answer as a to decimal places. Do not round intermediate results
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started