The rise of the capital in the funding round.

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Answer 1

Question

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

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A high growth company raised $10,000,000.00 in capital from a venture capital firm in the early growth stage of funding. The pre-money valuation of the company at the time the capital was raised $20,000,000.00. The terms of the investment also had an annual dividend of 8% and an exit preference of 1.2X upon a liquidity event. Based on these facts please answer the following questions. After the closing of the capital funding what was the post money valuation and the venture capitalist’s percentage of ownership. Presuming the company sells for $100,000,000.00 what would the venture capitalist receive in proceeds? Presuming the company sells for $27,000,000.00 what would the owners (company) receive in proceeds. Presuming the company sells for $100,000,000.00 but also has $10,000,000.00 of debt on the balance sheet, what will the owners receive in proceeds?

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Answer 2

Question

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

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Answer 3

Question

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

Expert Solution & Answer

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Answer 4

Question

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

Expert Solution & Answer

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Answer 5

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

Answer 6

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

Answer 7

Chapter 23, Problem 6P

a.

Summary Introduction

To determine: The rise of the capital in the funding round.

Answer 8

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

Answer 9

b.

Summary Introduction

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

Answer 10

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

Answer 11

c.

Summary Introduction

To determine: The distribution of ownership across each security after Series C financing.

Answer 12

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

Answer 13

d.

Summary Introduction

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 23.1 - Prob. 1CC Ch. 23.1 - Prob. 2CC Ch. 23.2 - Prob. 1CC Ch. 23.2 - Prob. 2CC Ch. 23.3 - List and discuss four characteristics about IPOs...Ch. 23.3 - Prob. 2CC Ch. 23.4 - Prob. 1CC Ch. 23.4 - What is the average stock price reaction to an...Ch. 23 - Prob. 1P Ch. 23 - What are the advantages and the disadvantages to a...

The rise of the capital in the funding round.

Solution Summary: The author calculates the rise of the capital in the funding round, based on the following data: Series A is 4,000,000, Series B is 15,000,000 and Series C is 50,000,000.

To determine: The rise of the capital in the funding round.

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

To determine: The distribution of ownership across each security after Series C financing.

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction:

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Chapter 23 Solutions

The rise of the capital in the funding round.

Solution Summary: The author calculates the rise of the capital in the funding round, based on the following data: Series A is 4,000,000, Series B is 15,000,000 and Series C is 50,000,000.

To determine: The rise of the capital in the funding round.

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round. Introduction:

To determine: The distribution of ownership across each security after Series C financing.

To determine: The multiple of money earned in each funding round series, and founder and employees. Introduction:

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Chapter 23 Solutions

To determine: The fractions of the firm’s shares were held by common shareholders after the funding round.

Introduction:

To determine: The multiple of money earned in each funding round series, and founder and employees.

Introduction: