Question: Please help 8. Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco
8. Suppose that EBV makes a $6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a S10M Series B financing from Talltree for 2M shares at $5 per share. The founders and the stock pool have claims on 3M shares of common stock Consider the following cases: Case I: Series A has no antidilution protection. Case II: Series A has full-ratchet antidilution protection For each of these cases, what percentage of Newco (fully diluted) would be controlled by EBV following the Series B investment? What would be the post-money and pre-money valuations
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