Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

You invest $50k in a startup's 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. Hint: Refer to your quiz. There are 5 steps to this question. Question 1: Future value of convertible notes..Do not use $ and USE 2 decimals. You invest $50k in a startup's 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. Hint: Refer to your quiz. There are 5 steps to this question. Question 1: Future value of convertible notes..Do not use $ and USE 2 decimals

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Behavioral Finance And Capital Markets

Authors: A. Szyszka

5th Edition

1137338741, 9781137338747

More Books

Students also viewed these Finance questions

Question

Summarize the ABCDE method for overcoming irrational beliefs.

Answered: 1 week ago