Existing series b investors own 40% of the company, purchased for $5 million. new series c investors purchase 10% of the company for $2 million. the existing series b investors' ownership shares in the company now have an implied valuation of $8 million.
If 10% for two million, then 40% for 2*4= 8 million.
Therefore, the implied valuation of the series B will be $8 million.
What is implied valuation?
The implied valuation is the value of the company included in the offer price per share. It is calculated by multiplying the offer price by the number of fully diluted shares outstanding.
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