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EBV is considering a $6M Series A investment into a new business venture. The founding team of the venture currently holds 12M common stocks. Suppose
EBV is considering a $6M Series A investment into a new business venture. The founding team of the venture currently holds 12M common stocks. Suppose that EBV decides to consider three possible structures for the Series A stock.
Structure I: 6M shares of CP.
Structure II: RP + 3M shares of common.
Structure III: PCPC with participation as-if 6M shares of common, with liquidation return capped at 5 times OPP.
Plot the exit diagrams for each structure. Mark the slopes and coordinates of key points.
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