Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

You invest $50k in a startups seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds

You invest $50k in a startups seed round using a convertible note with a pre-money valuation of $5M, 20% discount. Converts in 2 years, compounds daily (365), earns 8% annually.

There are 1 million share outstanding. What is the unrealized return, IRR and Cash on Cash Multiple? Valuation Cap is $1.5 million.

Question 1: Future value of convertible notes. USE 2 decimals.

Question 2: Original share price

Question 3: Number of shares the convertible notes holder receive. Use 3 decimals

Question 4: What is IRR?

Question 5: What is Cash on Cash multiple? Use 2 decimlas

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Undergraduates

Authors: Wallace

4th Edition

9781618533081

Students also viewed these Finance questions