1. You have raised $1mm from VCs in exchange for 20% of your company, using Simple(nonparticipating) Preferred Stock wit

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answerhappygod
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1. You have raised $1mm from VCs in exchange for 20% of your company, using Simple(nonparticipating) Preferred Stock wit

Post by answerhappygod »

1. You have raised $1mm from VCs in exchange for 20% of your
company, using Simple(nonparticipating) Preferred Stock with a 2x
Liquidation Preference. You sell company for $8mm. How much money
do the VCs get?
2. You have raised $1mm from VCs in exchange for 20% of your
company, using Participating Preferred Stock with a 2x Liquidation
Preference. You sell your company for $8mm. How much money do the
VCs get?
3. You start off owning 100% of the stock in your company. Then
you raise $200,000 in a Seed round by issuing equity at $1mm
pre-money valuation, after a year, you raise $4mm in a Series A
round by issuing equity at a $9mm pre-money valuation. What % of
your company do you own after that?
4. You own 100% of your company and have issued yourself $2mm
shares; you raise $4mm in VC on a $12mm Pre-money valuation. How
many shares do you issue to the VC?
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