Three years ago, you founded your own company. You invested $100,000 of your own money and received 5.0 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing Round Series B Series C Series D Price $0.60 3.00 3.00 Number of Shares a. What is the pre-money valuation for the Series D funding round? The pre-money valuation is $52.4 million (Round to one decimal place.) 1,050,000 650,000 500,000 a. What is the pre-money valuation for the Series D funding round? b. What is the post-money valuation for the Series D funding round? e. Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round?

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
icon
Related questions
Question

Cc. 193.

Three years ago, you founded your own company. You invested $100,000 of your own money and received 5.0 million shares of Series A preferred stock. Your company has since been through
three additional rounds of financing
Round
Series B
Series C
Series D
Price
$0.60
3.00
3.00
Number of Shares
a. What is the pre-money valuation for the Series D funding round?
The pre-money valuation is $52.4 million (Round to one decimal place.)
1,050,000
650,000
500,000
a. What is the pre-money valuation for the Senes D funding round?
b. What is the post-money valuation for the Series D funding round?
e. Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you
own after the last funding round?
Transcribed Image Text:Three years ago, you founded your own company. You invested $100,000 of your own money and received 5.0 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing Round Series B Series C Series D Price $0.60 3.00 3.00 Number of Shares a. What is the pre-money valuation for the Series D funding round? The pre-money valuation is $52.4 million (Round to one decimal place.) 1,050,000 650,000 500,000 a. What is the pre-money valuation for the Senes D funding round? b. What is the post-money valuation for the Series D funding round? e. Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 3 images

Blurred answer
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education