VC Return Homework Value given in...

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VC Return Homework
                                    Value given in problem
                                    Formula/Calculation/Analysis required
        Accel Growth Fund IRR on Equity Investment
        Series E prefe
ed stock
        Equity Value Year 0    $20,000,000
        Shares    2,932,553
        Price at Issue in 2009
        Class A Common Stock
        Conversion ratio    12        FCF
        Converted Shares
        IPO Price Nov. 4, 2011
        Equity Value Year 2
        IRR
In November 2009, Accel Growth Fund invested $20 million in Groupon by buying 2,932,553 shares of Series E convertible prefe
ed stock. What was the realized IRR of this investment, if the fund sold at IPO and "each share of Series E prefe
ed stock was converted into 12 shares of Class A common stock on October 31, 2011" (Amendment No. 8 to form S-1, filed with SEC on November 2, 2011, page II-3)? To find the IPO price, you should download Groupon’s IPO prospectus (form 424B4) from Edgar or other sources.

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Prateek · Accepted Answer

VC Return Homework
									Value given in problem
									Formula/Calculation/Analysis required
		Accel Growth Fund IRR on Equity Investment
		Series E preferred stock
		Equity Value Year 0	$20,000,000
		Shares	2,932,553	6.

VC Return Homework Value given in problem Formula/Calculation/Analysis required Accel Growth Fund IRR on Equity Investment Series E preferred stock Equity Value Year 0 $20,000,000 Shares 2,932,553...

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