Venture Capital
1 Answer(s)
Binny
If amount invested = $1 million
Liquidation Pref = 2x
Amount on Exit = $10 million
Equity stake = 10%
Then the investor will get
2x the investment = $ 2 million +
10% of the remaining $8 million = $800,000
So investor gets $2.8 million
Nov 26 2013 03:56 PM
Liquidation Pref = 2x
Amount on Exit = $10 million
Equity stake = 10%
Then the investor will get
2x the investment = $ 2 million +
10% of the remaining $8 million = $800,000
So investor gets $2.8 million