Consider the same setup as in Example 16.4, except that now there is an additional possibility, Structure

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Consider the same setup as in Example 16.4, except that now there is an additional possibility, Structure 3, where Talltree would receive 6M shares of CP with $12M APP.

(a) Perform a sensitivity analysis for the LP valuation of Structure 3 versus Structure 2 as a function of total valuation.

(b) Suppose that total valuation is $100M. For what number of shares, Z, in Structure 3, should Talltree be indifferent between Structures 2 and 3?

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Venture capital and the finance of innovation

ISBN: 978-0470454701

2nd Edition

Authors: Andrew Metrick

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Question Posted: Jun 23, 2012 05:12 AM

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Consider the same setup as in Example 16.4, except that now there is an additional possibility, Structure

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a Series B Series B conversion condition Structure 3 621 W 6 12 W B 48 Series B LP Cost 15 Series B ...View the full answer

Venture capital and the finance of innovation

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