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For Questions 2-4. Suppose EBV makes a \$6M Series A investment in Newco for 1M...

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For Questions 2-4. Suppose EBV makes a \$6M Series A investment in Newco for 1M shares at $6 per share. One year later, Newco has fallen on hard times and receives a \$6M Series B financing from Talltree for 6M shares at $1 per share. The founders and the stock pool have claims on 3M shares of common stock. Going forward, for brevity we will use the term "employees" to mean "founders and the stock pool". If Series A has broad-base weighted-average antidilution protection: What percentage of Newco (fully diluted) would be controlled by EBV following the Series B investment? What would be the post-money and pre-money valuations? 40%,$15M,$9M28%,$12.5M,$6.5M10%,$10M,$4M22%,$11M,$5M

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