Given the following information about a potential VC investment in a startup that is fully owned by the Founders before the investment:

VC investment = 50 million

Equity offered = 25%

Liquidation rights = 1x

For the kind of equity issued, three possibilities are considered:

1. Common stock
2. Convertible, preferred, non-participating stock
3. Convertible, preferred, participating stock

We want to analyse three potential exit scenarios, whereby the whole company would be sold to a third party and the proceeds would be distributed to Founders and VC according to the different kinds of equity issued. The scenarios are:

1. 25 million
2. 100 million
3. 300 million

Calculate:

• Implied valuation of the company, pre- and post- money
• For each of the scenarios, and for each of the kinds of equity issued, calculate the amount of money received by VC and Founders and the effective distribution percentage received.
• Recalculate question 2 in the case that liquidation rights of the VC are 2 times.