Chapter 1 of 2
The Exit Math
Fiona models three exit scenarios: Series B at $30M valuation, acquisition at $15M, and acquisition at $50M. After QSBS exemption, dilution, and taxes, the after-tax proceeds are very different from the headline numbers.
Key Insight
At a $15M acquisition, Fiona's 12% stake yields $1.8M gross. After QSBS exemption (up to $10M federal tax-free), she nets approximately $1.6M. At $50M, the QSBS cap matters much more.
Model This Scenario