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Question 3 : Pancake stack in action ( p . 1 8 3 and 1 8 4 ) Hint: When computing payouts fromparticipating preferred stock,
Question : Pancake stack in action p and Hint: When computing payouts fromparticipating preferred stock, you use the exit value AND the amount remaining after the payout to the other investors. For example, if series A investor purchases a participating preferred for $ series B investor purchases a participating preferred for $ and the company exits for $ the payout is as follows: $M back to series B investor $ back to series A investor Remainder $$$$ is split founders Total Exit: Series B $$$ Series $$$ Founders $$$$note how this is also the same as of the $ that "remained"after the payout of preferred shared Inky has two equal owners. In Series A funding, they sell of the company to investor A for $ and give them participating preferred shares. In Series B they sell another of their company to Investor B for $ this time providing participating preferred shares. In Series C they sell of their company for $ to Investor who purchases participating preferred shares. One year later, prior to Series D they are acquired by Amazon for $ M How much will EACH entrepreneur and investor make from the exit? Assume no dilution across rounds. Im looking for the fivedollar amounts, one for Investor A Investor B Investor C and EACH of the entrepreneurs Investor gets: Investor B gets: Investor A gets: Entrepreneur gets: Entrepreneur gets:
Question : Pancake stack in action p and
Hint: When computing payouts fromparticipating preferred stock, you use the exit value AND the amount remaining after the payout to the other investors. For example, if series A investor purchases a participating preferred for $ series B investor purchases a participating preferred for $ and the company exits for $ the payout is as follows:
$M back to series B investor
$ back to series A investor
Remainder $$$$ is split founders
Total Exit:
Series B $$$
Series $$$
Founders $$$$note how this is also the same as of the $ that "remained"after the payout of preferred shared
Inky has two equal owners. In Series A funding, they sell of the company to investor A for $ and give them participating preferred shares. In Series B they sell another of their company to Investor B for $ this time providing participating preferred shares. In Series C they sell of their company for $ to Investor who purchases participating preferred shares. One year later, prior to Series D they are acquired by Amazon for $ M How much will EACH entrepreneur and investor make from the exit? Assume no dilution across rounds. Im looking for the fivedollar amounts, one for Investor A Investor B Investor C and EACH of the entrepreneurs
Investor gets:
Investor B gets:
Investor A gets:
Entrepreneur gets:
Entrepreneur gets:
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