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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
EBV is considering a $5M Series A investment in Newco. EBV proposes to structure the investment as
6M shares of convertible preferred (CP) stock. The employees of Newco have claims on 10M shares of
common stock. Thus, following the Series A investment, Newco will have 10M common shares
outstanding and would have 16M shares outstanding on conversion of the CP. EBV estimates a 25
percent probability for a successful exit, with an expected exit time in 5 years and an exit valuation of
$500M. The $100M EBV fund has annual fees of 2 percent for each of its 10 years of life and earns 20
percent carried interest on all profits.
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