Suppose EBV makes a $$6M$ Series A investment in Newco for $1M$ shares at $$6$ per share.

One year later, Newco has fallen on hard times and receives a $$6M$ Series $B$ financing from Talltree for $6M$ shares at $$1$ per share.

The founders and the stock pool have claims on $3M$ shares of common stock. Going forward, for brevity we will use the term "employees" to mean "founders and the stock pool".

Suppose that Series A has broad$-$base weighted$-$average antidilution protection.

What is the postmoney valuation?

$$5M$

$$9M$

$$11M$

$$7M$