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Suppose a company just arranged its first funding round with a VC. The VC is investing $5 million in exchange for Series A convertible preferred
Suppose a company just arranged its first funding round with a VC. The VC is investing $5 million in exchange for Series A convertible preferred shares, based on a $8 million pre- money valuation. There are 16 million common shares currently outstanding (and no other convertible or participating preferred shares outstanding). How many total common shares will there effectively be (on an "as converted" or "fully diluted" basis) after this round? Your
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