Question
You have sold 30% of your company to VC's for $10m using Participating Preferred Stock with a 2x Liquidation preference and a $50m valuation cap.
You have sold 30% of your company to VC's for $10m using Participating Preferred Stock with a 2x Liquidation preference and a $50m valuation cap. Shortly after that, you recieve an offer from Amazon to buy your company for $60m. How much money will the VCs get from the sale?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
