Question

Three years​ ago, you founded your own company. You invested $ 100 comma 000$100,000 of your...

Three years​ ago, you founded your own company. You invested

$ 100 comma 000$100,000

of your own money and received

5.05.0

million shares of Series A preferred stock. Your company has since been through three additional rounds of financing.  

Round

Price​ ($)

Number of Shares

Series B

0.60

1,200,000

Series C

3.50

   700,000

Series D

5.005.00

   600,000

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?

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Answer #1

a. the​ pre-money valuation for the Series D funding round = shares issued till date×price of share in Series C funding.
=(5,000,000+1,200,000+700,000)×3.50
=$24,150,000

b. the​ post-money valuation for the Series D funding round = shares issued till date×price of share in Series D funding.
=(5,000,000+1,200,000+700,000+600,000)×5.00
=$37,500,000

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