Your Seed Round investor has been helpful as your startup has grown. Unfortunately, you are now in difficult negotiations with them over the A round terms. They are demanding 2x Liquidation Preferences and Participation. They had neither for the Seed Round. Your plan is to offer them additional equity in exchange for them giving up participation and accepting non-participating Preferred equity. They will only accept this offer if they make just as much money without Participation and Liquidation Preferences as they would have with Participation and Liquidation Preferences. How much additional equity would you need to offer them in exchange for giving up their Participation, so that they see the exact same return on their investment at your planned exit, based on having the additional equity, but with Non-Participating terms? Here are the details: - Planned Exit Value $140 million - Ownership by the VC with Participation is 32% for their $5.5 million - The Option Pool was created immediately after the formation of the company at 20%, before investment, as usual - Founders initially split the company equally among all 4 founders Please post your answer as a %, without the % sign, using 2 decimal places. For example, 12.346% would be posted as 12.35 Your Seed Round investor has been helpful as your startup has grown. Unfortunately, you are now in difficult negotiations with them over the A round terms. They are demanding 2x Liquidation Preferences and Participation. They had neither for the Seed Round. Your plan is to offer them additional equity in exchange for them giving up participation and accepting non-participating Preferred equity. They will only accept this offer if they make just as much money without Participation and Liquidation Preferences as they would have with Participation and Liquidation Preferences. How much additional equity would you need to offer them in exchange for giving up their Participation, so that they see the exact same return on their investment at your planned exit, based on having the additional equity, but with Non-Participating terms? Here are the details: - Planned Exit Value $140 million - Ownership by the VC with Participation is 32% for their $5.5 million - The Option Pool was created immediately after the formation of the company at 20%, before investment, as usual - Founders initially split the company equally among all 4 founders Please post your answer as a %, without the % sign, using 2 decimal places. For example, 12.346% would be posted as 12.35