What is the pre-money valuation

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A VCPE firm is considering a $10M Series A investment for 5M shares of preferred stock at $2 per share. The proposed capitalization table for the new venture is as follows:

 

Pre-financing

Post-financing

 

No. of Shares

No. of Shares

Founder (Common)

7,750,000

7,750,000

Employee Stock Pool (Common)

 

Issued

   Unissued

 

2,250,000

 

   300,000

1,950,000

 

2,250,000

 

  300,000

1,950,000

Series A (Preferred)

0

5,000,000

a. What is the pre-money valuation?

b. What is the post-money valuation?

c. What is the fully diluted share count?

d. What is the proposed ownership percentage of Series A investor?

e. What is the diluted percentage of the founder post-financing?

Reference no: EM133063099

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