Question

5. BitBox has raised $9 million in a Series A round with $30 million post-money value and a 2 × liquidation preference, and $23 million in a Series B round with a $74 million post-money value and a 3 x liquidation preference plus seniority over Series A. a. What will Series A, Series B, and common shareholders receive if BitBox is sold for $90 million? (4 points) b. What will Series A, Series B, and common shareholders receive if BitBox is sold for $180 million? (4 points) c. What will Series A, Series B, and common shareholders receive if BitBox is sold for $350 million? (4 points)

Name: 5 bitbox has raised 9 million in a series a round with 30 million post money value and a 2 liquidation preference and 23 million in a series b round with a 74 million post money value and a 79846
Uploaded: 2023-12-11T16:41:04-08:00
Duration: 4 min 29 s
Channel: Akash M
Description: 5 bitbox has raised 9 million in a series a round with 30 million post money value and a 2 liquidation preference and 23 million in a series b round with a 74 million post money value and a 79846

          5. BitBox has raised $9 million in a Series A round with $30 million post-money value and a 2 × liquidation preference, and
$23 million in a Series B round with a $74 million post-money value and a 3 x liquidation preference plus seniority over
Series A.
a. What will Series A, Series B, and common shareholders receive if BitBox is sold for $90 million?
(4 points)
b. What will Series A, Series B, and common shareholders receive if BitBox is sold for $180 million?
(4 points)
c. What will Series A, Series B, and common shareholders receive if BitBox is sold for $350 million?
(4 points)

5 bitbox has raised 9 million in a series a round with 30 million post money value and a 2 liquidation preference and 23 million in a series b round with a 74 million post money value and a 79846

Added by Eugenia B.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

12/11/2023

Step 1

If BitBox is sold for $90 million: Series B has seniority and a 3x liquidation preference, so they receive: $$3 \times 23 = 69 \text{ million}$$ Series A has a 2x liquidation preference, so they receive: $$2 \times 9 = 18 \text{ million}$$ Total paid to Series A Show more…

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5. BitBox has raised $9 million in a Series A round with $30 million post-money value and a 2 × liquidation preference, and $23 million in a Series B round with a $74 million post-money value and a 3 x liquidation preference plus seniority over Series A. a. What will Series A, Series B, and common shareholders receive if BitBox is sold for $90 million? (4 points) b. What will Series A, Series B, and common shareholders receive if BitBox is sold for $180 million? (4 points) c. What will Series A, Series B, and common shareholders receive if BitBox is sold for $350 million? (4 points)