Series A investment is the preferred stock issued to a venture capitalist during the first round by a portfolio company. This preferred stock is convertible to common stock for example during the issue of an IPO or when the company is on sale. Normally this happens in the range of $6m to $10M and finances the company for a range of six months to two years. This finance is for product development, marketing and branding, new employee hiring and any other crucial commercial undertakings.
Pre-financing valuation: 5 million dollars Continue reading...
New money: 10 million dollars
Post money valuation: $100 Million