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Use the above capitalization table for Startup Inc. (Startup) and assume that: Founders (Natalie & Matt) purchased their shares of common stock for $0.001 per

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Use the above capitalization table for Startup Inc. (Startup) and assume that: Founders (Natalie & Matt) purchased their shares of common stock for $0.001 per share (for a total of $5,000) Aventure capital fund managed by Tim and Hadley of CMU Ventures ("CMUV) recently paid $1.00 for each share of its Series A preferred stock (for a total of $5,000,000). Immediately after the Series A financing, CMUV has the right to convert each share of its Series A preferred stock into one share of common stock The Series A preferred stock has "full ratchet' price-based anti-dilution protection The Series A preferred stock has a ONE times liquidation preference right (le, LP = 1x) AND the Series A preferred stock is "full participating The above capitalization table is accurate and complete (ie.Jimmediately after the Series A financing there are no other outstanding shares of stock or options to purchase stock) Using the Venture Capital valuation method we covered in class, what were CMUV'S POST-money and PRE-Money valuations of Startup? POST-money = $5,005,000; PRE-money = $5,000 POST-money - $10,000,000; PRE-money = $5,000,000 POST-money = $5,000; PRE-Money = $5,005,000 POST-money = $5,000,000; PRE-money = $10,000,000

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