The founder of a company issues 100,000 shares of series A stock for his own $250,000 investment.He then goes through three further rounds of investment,as shown below:
What is the post-money valuation for the series-D funding round?

Question

The founder of a company issues 100,000 shares of series A stock for his own $250,000 investment.He then goes through three further rounds of investment,as shown below: 
What is the post-money valuation for the series-D funding round?

Quizplus · Accepted Answer

To calculate the post-money valuation for the series-D funding round, we need to first calculate the pre-money valuation for the round. 
The pre-money valuation for series-C is $1.16 million (given). 
The series-D round is raising $1 million for 12.5% of the company, so its post-money valuation can be calculated as:
Post-money valuation = Pre-money valuation + Investment 
Investment = $1 million / 12.5% = $8 million 
Post-money valuation = $1.16 million + $8 million = $9.16 million 
Therefore, the post-money valuation for series-D funding round is $2.24 million.

The Founder of a Company Issues 100,000 Shares of Series