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Series A VC specified the following security in the term sheet. PCPC with participation as-if 5M shares of common, with liquidation return capped at four
Series A VC specified the following security in the term sheet. PCPC with participation as-if
5M shares of common, with liquidation return capped at four times OPP, and with the liquidation
preference of 1X.
A. Show the exit diagram with all values indicated in the diagram, i.e., inflection point when
slope changes and conversion conditions. Show what x-axis and y-axis represent.
B. suppose the portfolio company is acquired at an exit value of $35M. How much is the
share of founder and Series A investor?
5M shares of common, with liquidation return capped at four times OPP, and with the liquidation
preference of 1X.
A. Show the exit diagram with all values indicated in the diagram, i.e., inflection point when
slope changes and conversion conditions. Show what x-axis and y-axis represent.
B. suppose the portfolio company is acquired at an exit value of $35M. How much is the
share of founder and Series A investor?
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Public Finance In Theory And Practice
Authors: Richard Abel Musgrave, Peggy B. Muscrave
5th Edition
0070441278, 978-0070441279
