Jeremy Founded a Company

question 97

Multiple Choice

Jeremy founded a company. He issues 200,000 Class A preference shares for his own $100,000 investment. He then goes through three further rounds of investment, as shown below: Round Price Number of Shares Class B $1.00 500,000 Class C $1.50 300,000 Class D $2.25 400,000 What is the post-money valuation for the Class D funding round?

• A) $3.15 million
• B) $1.95 million
• C) $2.025 million
• D) $2.85 million

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Definitions:

Exponential Growth

A population growth pattern where the size of the population increases at a rate proportional to its current size, leading to faster growth as the population gets larger.

Carrying Capacity

The maximum population size of a biological species that an environment can sustain indefinitely.

Random Dispersion

A pattern of spacing of individuals within a population where the position of each individual is independent of others.

Interference Competition

Intraspecific competition in which certain dominant individuals obtain an adequate supply of the limited resource at the expense of other individuals in the population. Also called contest competition.