medium · Private Equity

A startup is raising a Series C round. The pre-money valuation is 100 million and the investment is 25 million. The existing Series B Preferred shares have full-ratchet protection and were issued at 10.00 per share, while the current Series C round is priced at 8.00 per share.

How many additional shares must be issued to the Series B holders to satisfy the anti-dilution provision?

  1. 2.0 million shares
  2. 10.0% more shares
  3. 0 shares
  4. 25.0% more shares

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