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: Round Price Number of Shares
Series B $2.50 200,000
Series C $2.75 300,000
Series D $2.80 300,000
What is the post-money valuation for the series D funding round?

Question

Quizplus · Accepted Answer

To calculate the post-money valuation for the series D funding round, we need to add up the total amount raised from all funding rounds and then add it to the pre-money valuation of the series D round. 
Total amount raised = $250,000 + (200,000 x $2.50) + (300,000 x $2.75) + (300,000 x $2.80) = $2,395,000
Pre-money valuation of series D round = 300,000 x $2.80 = $840,000
Post-money valuation of series D round = $2,395,000 + $840,000 = $3,235,000
Therefore, the post-money valuation for the series D funding round is $2.52 million (Option C).

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