Question: 8. A term sheet provision calls for a Series A investor to receive convertible preferred shares, specifying a 2x liquidation preference. The investor puts in

8. A term sheet provision calls for a Series A investor to receive convertible preferred shares, specifying a 2x liquidation preference. The investor puts in $4 Million for 20% of the company. If the firm is liquidated for $20 Million, what amount does the Series A investor receive
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
