Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 m shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Price ($) 0.70 Round Series B Series C 2.00 Series D 3.50 Number of Shares 1,100,000 600,000 500,000 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?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million
shares of Series A preferred stock. Your company has since been through three additional rounds of financing.
Price ($)
0.70
Round
Series B
Series C
Series D
2.00
3.50
Number of Shares
1,100,000
600,000
500,000
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?
Transcribed Image Text:Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Price ($) 0.70 Round Series B Series C Series D 2.00 3.50 Number of Shares 1,100,000 600,000 500,000 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?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education