With respect to calculation of returns on a venture capital model, specifically for series A funding, I have a few questions:
- Is the allocation of Equity All to preferred? What is a range of acceptability for preferred returns (specifically on series A consumer brands)
- Are there generally anti-dilution provisions between rounds for existing capital
- When does exit/partial exit for a series A fund occur generally? Subsequent funding rounds, eventual ultimate buyout or IPO exit etc (or do you just assume a terminal value at the subsequent round etc)
- Am I overthinking it? Do series A funds even build out expected returns models or is it all about market sizing and thinking about downside scenarios/potential areas of liability.