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Account for the conversion of the convertible note

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Assume in a VC financing round, company A's pre-money valuation is $15 million, the amount invested by the VC investors is $6 million. The principal plus accrued interest on outstanding promissory notes are $2 million, and the discounted rate for conversion of notes is 10%. The shares outstanding on a fully diluted basis prior to the investment is 1 million shares. If the founders and investors agree to use post-money method to account for the conversion of the convertible note, the post-money value of A is $_____________ million.

Reference no: EM133117320

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