hard · Private Credit & Debt
A $10,000,000 investment in a Growth Equity round is made at a $40,000,000 pre-money valuation. The investor has 'Full Ratchet' anti-dilution protection. One year later, the company raises a down-round at a $25,000,000 pre-money valuation.
What is the investor's new ownership percentage after the down-round, assuming the down-round itself was a $5,000,000 injection?
- 20.00%
- 40.00%
- 33.33%
- 25.00%
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