Question: 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

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?

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