Question
Book Icon
Chapter 23, Problem 5P

a.

Summary Introduction

To determine: The pre-money valuation for the Series D funding round.

Introduction: Pre-money valuation is the valuation of the firm before it receives new financing or investments.

b.

Summary Introduction

To determine: The post-money value for the Series D funding round.

c.

Summary Introduction

To determine: The percentage of firm owned after the last funding round.

Blurred answer
Students have asked these similar questions
Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Price ($) 0.70 Round Series B Series C Series D 2.00 3.50 Number of Shares 1,100,000 600,000 500,000 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?
4
You founded your firm with a contribution of $700,000, receiving 1,000,000 shares of stock. Since then, you sold 5,000,000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest $7,000,000 and would receive 5,000,000 newly issued shares. What is the post-money valuation? Express the terms of your answer completely and in strictly numerical terms. For example: If your answer is one million dollars, write: 1000000.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
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