medium · Private Equity pe-core
A Series A investor puts $10M into a startup at a $30M pre-money valuation. The investor requires a 20% post-financing option pool, and the current pool is 0%.
If the option pool is created pre-money, what is the effective pre-money valuation for the founders?
- $22M
- $32M
- $24M
- $30M
Sign up free to see the explanation and track your rank →
More Private Equity pe-core practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?