BitBox has raised $12 million in a Series A round with $37 million post-money value and a 1.5x liquidation preference, and $25 million in a Series B round with a $75 million post-money value and a 3x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if BitBox is sold for a. $87 million? b. $102 million? c. $200 million? d. $300 million?

BitBox has raised $12 million in a Series A round with $37 million post-money value and a 1.5x liquidation preference, and $25 million in a Series B round with a $75 million post-money value and a 3x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if BitBox is sold for a. $87 million? b. $102 million? c. $200 million? d. $300 million?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

BitBox has raised $12 million in a Series A round with $37 million post-money value and a 1.5 × liquidation preference, and $25 million in a Series B round with a $75 million post-money value and a
3x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if BitBox is sold for
a. $87 million?
b. $102 million?
c. $200 million?
d. $300 million?

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