Question: This is the cap table for your venture investment in a private company after you make a Series A investment; your stock is 2x Participating
This is the cap table for your venture investment in a private company after you make a Series A investment; your stock is 2x Participating Preferred.
|
| Post Series A Investment |
| ||
| Investor | # of shares | Share value | % ownership | |
| Founders Group | 1,687,500 | 6,750,000 | 45% | |
| options | 375,000 | 1,500,000 | 10% | |
| Venture investor | 1,687,500 | 6,750,000 | 45% | |
| Total | 3,750,000 | 15,000,000 | 100% | |
If the company sells to a bigger company for $30,000,000, what is the cash-on-cash return for your VC firm? (Give your answer as a number rounded to the tenths, e.g. if your answer is 5.67 input 5.7)
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