Question 2

BioQTech plc has raised capital as follows:

Funding Round	Amount Raised	Post-Money Valuation	Liquidation Preference
Series A	15 million	45 million	1.5x
Series B	35 million	69 million	2.0x
Series C	25 million	80 million	2.0x

The table above shows the capital raised and post-money valuations in each funding round and the liquidation preference of investors in each round. Series C investors have the highest seniority followed by Series B then Series A and then common shareholders. None of the funding rounds offered investors participation rights.

REQUIRED:

i) What will Series A, Series B, Series C, and common shareholders receive if the company is sold for 100 million?

(8 marks)

ii) What will Series A, Series B, Series C, and common shareholders receive if the company is sold for 250 million?

(8 marks)

(Total 16 marks)