Three years ago, you founded your own company. You invested $100,000 of your money and received 5
Question:
a. What is the pre-money valuation for the Series D funding round?
b. What is the post-money valuation for the Series D funding round?
c. Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last fundinground?
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:
a Before the Series D funding round there are 5000000 1000000 500000 6500000 shares o...View the full answer
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Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
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