A) Given the down round, what is the new conversion price for Round 1 shares? B) How many shares will Round 1 investors get if they convert their interest to common stock? C) As of July 1, 2020, what percentage interests would the three parties have in the equity of the firm? (On an as if converted basis) If no additional funding is raised, what will the equity percentages be on January 1, 2024? (Also assume as if converted basis)
One million (1,000,000) shares of stock were issued to the founders of a start-up company on January 1, 2019. On July 1, 2019, the firm raised $500,000 from outside investors and issued 500,000 of convertible
A) Given the down round, what is the new conversion price for Round 1 shares?
B) How many shares will Round 1 investors get if they convert their interest to common stock?
C) As of July 1, 2020, what percentage interests would the three parties have in the equity of the firm? (On an as if converted basis)
If no additional funding is raised, what will the equity percentages be on January 1, 2024? (Also assume as if converted basis)
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