Question: Please help I will upvote if correct Suppose that EBV makes a $6M Series A investment in Newco for 6M shares at $1 per share.
Suppose that EBV makes a \$6M Series A investment in Newco for 6M shares at $1 per share. One year later, Newco has fallen on hard times and receives a $8M Series B financing from Talltree for 8M shares at $1 per share. The founders and the stock pool have claims on 3M shares of common stock. Series A has full ratchet antidilution protection. 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? EBV series A ownership =25.26%; post-money valuation =$17M; premoney valuation =$9M EBV series A ownership =15.29%; post-money valuation =$16M; premoney valuation =$8M EBV series A ownership =35.29%; post-money valuation =$16M; premoney valuation =$8M EBV series A ownership =35.29%; post-money valuation =$17M; premoney valuation =$9M
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