Question

Inigma Inc., is a startup company formed 2 years ago. As part of a series A...

Inigma Inc., is a startup company formed 2 years ago. As part of a series A fundraising round, Timits LP a VC firm has issued a term sheet for the proposed deal. Pre-financing, Inigma has 12M common shares owned by the founders. In addition, the company has issued 2M common shares to its employees (an ISSUED employee stock pool). Timits term sheet includes an additional 1M UNISSUED common shares (an UNISSUED employee stock pool). This yields a total common share count pre-financing of 15M. Timits proposes a series A investment of $12M in 6M shares of convertible preferred stock. The series A can be converted to ordinary stock on a 1:1 basis. What is the pre-money valuation?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Pre-money valuation is the valuation of the start-up company before any money is injected in, here pre-financing the total value of $15million is mentioned, which will be the pre-money valuation of the company.

Add a comment
Know the answer?
Add Answer to:
Inigma Inc., is a startup company formed 2 years ago. As part of a series A...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Enigma Inc., is a startup company formed 3 years ago. The current capital structure consists of...

    Enigma Inc., is a startup company formed 3 years ago. The current capital structure consists of 15M common shares (ordinary shares) owned by the founder, employees and family members, and 12M convertible preferred stock owned by Timits LP a VC firm. In the event of an IPO or an acquisition of Enigma, Timits has the choice of converting each share of preferred stock into one share of common stock OR redeemeption for $2 per share, a total of $24M. What...

  • Three years ago, you founded your own company. You invested $108,000 of your own money and...

    Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 2.00 6.50 Number of Shares 1,050,000 650,000 650,000 Based on the information provided above (and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...

  • Three years ago, you founded your own company. You invested $110,000 of your own money and...

    Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 3.00 3.00 Number of Shares 1,200,000 700,000 500,000 Based on the information provided above and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...

  • Albuquerque, Inc., acquired 18,000 shares of Marmon Company several years ago for $800,000. At the acquisition...

    Albuquerque, Inc., acquired 18,000 shares of Marmon Company several years ago for $800,000. At the acquisition date, Marmon reported a book value of $840,000, and Albuquerque assessed the fair value of the noncontrolling interest at $70,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

  • Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago for $900,000. At the acquisition...

    Albuquerque, Inc., acquired 27,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $980,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present...

  • Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $820,000. At the acquisition...

    Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $820,000. At the acquisition date, Marmon reported a book value of $910,000, and Albuquerque assessed the fair value of the noncontrolling interest at $205,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

  • Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $810,000. At the acquisition...

    Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $810,000. At the acquisition date, Marmon reported a book value of $880,000, and Albuquerque assessed the fair value of the noncontrolling interest at $270,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

  • Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $820,000. At the acquisition date, Mar...

    Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $820,000. At the acquisition date, Marmon reported a book value of $910,000, and Albuquerque assessed the fair value of the noncontrolling interest at $205,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

  • Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $720,000. At the acquisition...

    Albuquerque, Inc., acquired 36,000 shares of Marmon Company several years ago for $720,000. At the acquisition date, Marmon reported a book value of $750,000, and Albuquerque assessed the fair value of the noncontrolling interest at $80,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

  • Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $700,000. At the acquisition...

    Albuquerque, Inc., acquired 24,000 shares of Marmon Company several years ago for $700,000. At the acquisition date, Marmon reported a book value of $810,000, and Albuquerque assessed the fair value of the noncontrolling interest at $175,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT