Three years ago, you founded your own company. You invested $100,000 of your own money and received

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Three years ago, you founded your own company. You invested $100,000 of your own money and received 5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing.

a. What is the pre-money valuation for the Series D funding round?
b. What is the post-money valuation for the Series D fundinground?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:01 AM

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Three years ago, you founded your own company. You invested $100,000 of your own money and received

Question:

Round Series B Series C Series D Price (S) 0.50 2.00 4.00 Number of Shares 1,000,000 500,000 500,000

Step by Step Answer:

Plan The premoney valuation will be the value of the prior shares outstanding at the price in the fu...View the full answer

Fundamentals of Corporate Finance

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