You have been asked to value LaDefense Inc, a Technology start-up, in its multiple rounds of financing. Mr. Defense, a serial entrepreneur, need 8 million today and 7 million 2 years later and finally 9 million 4 years later. Mr. LaDefense is planning to go public in 6 years with an estimated IPO value of 150 million. Mr. LaDefense and his partners want to have 1 million shares, and the discount rate is 38%.

a. What are pre- and post-money valuation for the first, second, and third rounds of financing?

b. What is the required ownership for the first, second, and third rounds of investors?

c. What is the estimate per share prices after the first, second, and third rounds of investing?

d. How many shares would the firm have after three rounds of financing?