Suppose that it is one year after Andreessen Horowitzs investment in Alpha Fintech (using the convertible preferred
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Question:
Suppose that it is one year after Andreessen Horowitz’s investment in Alpha Fintech (using the convertible preferred structure used in the previous problem), and Greycroft makes a Series B investment for 6M shares of Alpha Fintech at $.02 per share. Following the Series B investment,
what percentage of Alpha Fintech (fully diluted) would be controlled by Andreessen Horowitz under the following scenarios:
a. Series A has no anti-dilution protection.
b. Series A has full-ratchet anti-dilution protection.
c. Series A has broad-based weighted average anti-dilution protection.
d. Series A has narrow-based weighted average anti-dilution protection.
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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