The current share price implied by post money valuation

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Company Z raises 30 on 40 with VC taking convertible preferred with a conversion price equal to the current share price implied by post money valuation. The conversion rate is 1 PS for 1 CS. Founders originally had 10M shares. The founders believe that either the company grows to $600M if their product work as expected or $300M if it is functional but not spectacular. a) What is the implied value per share based on valuation by VC? b) What is proportion of ownership of VC? Of founders? c) What is the value at exit that would make the VC want to convert into common stock?

Reference no: EM131314758

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