question archive The following is a Cap Table for a firm that has received two rounds of VC funding
The following is a Cap Table for a firm that has received two rounds of VC funding
Subject:FinancePrice: Bought3
The following is a Cap Table for a firm that has received two rounds of VC funding. The Series B funding was for $25,000,000, and the Series A was for $10,000,000. Preferences are stacked with “last in first out†priority on money invested, with participation after all VCs have been paid out their investment ($35,000,000 total). Caps apply.InvestorSharesLiquidation Preference Per ShareSeries B Preferred5,000,000$5.00 (capped at 3x)Series A Preferred5,000,000$2.00 (capped at 2x)Founders5,000,000$0.00 The firm is acquired for $100,000,000 in cash. Determine the price (cash) per share that each of the investor class receives.
