Consider the following four investors in Newco:

Series A: CP: $5M APP (and 2X liquidation preference) or converts to 5M shares

Series B: RP: $10M APP plus 5M shares of common

Series C: PCP: $10M APP and as-if conversion to 5M shares, with a threshold at

$10 per share

Series D: PCP: $20M APP and converts to 5M shares, with a threshold at $15 per share

In addition to these investors, the employees have claims on 10M shares of common.

All four VC investors have 20 percent carry, committed capital of $250M, and lifetime fees of $50M. Following the Series D investment, all investors agree that the total valuation of the firm is $100M. Base-case option-pricing assumptions apply.

(a) Find the LP valuation equation for each Series.

(b) Compute the LP valuation for each Series.