The pre-money valuation is the valuation of the company just before the new money from investors is injected. The pre-money valuation can be found by subtracting the amount of new investment from the post-money valuation:

Pre-money Valuation = Post-money Valuation Investment by RedCap

Pre-money Valuation = $15,000,000 $6,000,000

Pre-money Valuation=$9,000,000

Therefore,

a. The post-money valuation of the startup after Series A is $15 million.

b. The pre-money valuation of the startup before Series A is $9 million.

Later, Blue Bird Capital invests $10 million in Series B round at a post-money valuation of $50 million.

a. What was the pre-money valuation before series B?

b. What equity stake did Blue Bird Capital receive?

c. What is RedCap Venture's ownership share after series B round?

d. Is Series B round an up, flat, or a down round?