Question 6. (29 points total] JS Ventures, a Seattle-based VC, is planning to invest $10 million in the Series A of a startup operating in the biotechnology sector. Prior to the Series A, the startup founders own 5 million common shares and there are no other shareholders. The startup has no debt. VC investors (including JS Ventures) expect that, if the startup is successful in obtaining FDA approval for a new drug it is developing, it will generate $20 million of revenue in five years; at that time, the startup will be able to go public via an IPO at an enterprise valuation multiple of 20x its revenue. In order to obtain FDA approval and go public, the startup will need to raise an additional $25 million from another VC firm in a Series B round in two years (i.e., three years before the IPO). JS Ventures has a target IRR of 60%, and it anticipates that the Series B VC will have a target IRR of 50%. Both the Series A and the Series B VCs will receive convertible preferred shares with a 1x liquidation preference. Please calculate the following: a) Valuation of the startup at the time of its IPO. [2 points] b) The pre- and post-money valuations at the Series B that will ensure that the Series B VC meets its target IRR in expectation. [10 points] c) The pre- and post-money valuations at the Series A that will ensure that JS Ventures meets its target IRR in expectation. [10 points] d) The number of shares that JS Ventures needs to own to ensure that it will meet its target IRR in expectation, and JS Ventures' % ownership stake right after the Series B round. [7 points)