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Suppose a startup company has the following information: (15 points) Founders shares before VC investment: 2.5 million Pre-money valuation: $10 million VC investment: $5 million
Suppose a startup company has the following information: (15 points)
Founders shares before VC investment: 2.5 million
Pre-money valuation: $10 million
VC investment: $5 million
After a VC investment, the company issues a new 10% employee option pool. Calculate the values of A E in the following table:
Class | Shares | Preferred Price | Valuation | % |
Founders | 2,500,000 |
|
| A |
Employee Pool | B |
|
| 10% |
Venture Invests | C | D | $5,000,000 | 20% |
Total | E | D | $15,000,000 | 100% |
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