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Venture Capital - Conversion Order

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All CP Investors have 20% carry interest. Assume that Series D, E and F investors all have committed $100M investment capital.
- Series A: $2M for 10M shares (EBV)
- Series B: $11M for 10M shares (Talltree)
- Series C: $10M for 10M shares (Owl)
- Series D: $15M for 10M shares (2X liq pref) (Series D investors)
- Series E: $10M for 10M shares (3X liq pref) (Series E investors)
- Series F: $30M for 10M shares (Series F investors)
What is the conversion order for these investors?

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Solution Preview

A 2/10 = 0.20
B 11/10 = 1.10
C 10/10 = 1.00
D 30/10 = 3.00
E 30/10 = 3.00
F 30/10 = 3.00

The conversion order is A, C, B, D, E, F

We would follow the example on pg. 286 at this link: ...

Solution Summary

This solution shows the correct conversion order for the investors. All calculations are provided.