Assume an investor who invested $1 million holds 10% in your company and has a 1x liquidation preference. If you sell your company for $1 billion how much will this investor get?

Could you please tell me how to solve it.

1 Answer(s)


Ans 1x Liquidatation pref - first investor will take out his/her 1 million.

remaining amount = 999 million

 now investor will additionally get 10% of & 999 million which is 99.9 million 

so total cash investor get is 

99.9+1 = 100.9 million