Hey Monkeys - hoping you can help me out with this one.
Question - how to create a model/conceptually grasp the return of an investor's (VC, family office, etc) series A/B/C funding during the event of an IPO, asset acquisition, or buyout.
If it helps, the situation I have in mind is a pre-revenue, private biotech company. Theoretically, the management team should have their own "valuation" of their company, and a set number of shares distributed between the employees. So would there be an internal share price that's set, and determines how many shares the investor receives?
Not sure how to figure this out..
Thanks for the help