A Founder is raising money via a Series A round for her DeFi platform company. She wishes to raise $25mm in the A round. She receives two term sheets as detailed below.
• Termsheet 1: $30mm invested for 30% of the company, standard terms and conditions
including a single dip liquidation preference
• Termsheet 2: $30mm invested for 10% of the company, the same standard terms and
conditions as Termsheet 1 with the exception of a double dip liquidation preference and
an 8% cumulative PIK dividend
If the company is sold in three years, what is the minimum sale price that the Founder would
been better off if they had accepted Termsheet 2?
Quis deserunt iusto est nihil laborum ipsa consectetur. Non optio est qui explicabo quia architecto non. Quia et assumenda ipsum alias qui incidunt. Aliquid facilis totam ea magnam omnis quis. Sunt laudantium rem facilis sed deserunt in. Corporis eligendi aperiam ipsa debitis doloribus. Eveniet dolores asperiores quis aut exercitationem. Et soluta debitis laudantium qui culpa quidem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...