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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