hard · Private Equity pe-core

A Series A financing round is structured with a $20m pre-money valuation and a $5m new investment. The lead investor requires a 15% post-financing option pool to be created entirely from the 'pre-money' shares.

What is the effective pre-money valuation from the founders' perspective after accounting for the option pool carve-out?

  1. 17.00m
  2. 16.25m
  3. 21.25m
  4. 20.00m

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