Emergic: Rajesh Jain's Blog

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Valuation Answer

April 21st, 2010 · 5 Comments

The correct answer to yesterday’s question is $5.84 million. Here is the calculation: Tranche 1: VC gets 50% for $5 million Tranche 2: VC gets 25% for $4 million Tranche 3: VC gets 16.7% for $4 million So, after Round 1, the VC owns 50%. After Round 2, the VC owns (50% * 25%) + […]

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