Founders put in $750,000 cash in Year 1and then raise $3M Series A in Year 3. The pre-money valuation for the A round was $3.5M. The company then raises $5.5M in Series B in Year 4 at a pre-money valuation of $5.6M. The company is sold in Year 8 for 1.7x revenue of $35M. They also must pay off debt of $4M at this point and both Series A investors and Series B investors receive a 10% dividend per year (cumulative) paid off the top at the time of liquidation.