1. What is the term used to describe the cumulative impact of liquidation preferences on a startup's equity stack?

2. Syndicate Investor A (SIA) invested $75,000 in StartupX in the form of a SAFE with a $5,000,000 Cap. A year later StartupX raised $2,000,000 from Venture Investor A (VIA) at a post-money valuation of $8,000,000. This translated into a $7.00 per share price. How many shares will SIA receive upon its conversion of the SAFE?

3. Using the provided formula for calculating cumulative dividends, if an investor holds $5,000,000 in Convertible Preferred Shares with a 5% annual dividend rate for 18 months, how much cumulative dividends would they earn?

4. What is the primary purpose of cumulative dividends for preferred stockholders in a startup?

5. When are cumulative dividends typically paid to preferred stockholders?

6. What is the primary purpose of a waterfall analysis in venture capital?

7. What is the primary purpose of a capitalization table (cap table)?

8. Venture Investor A (VIA) is exiting from a $1,500,000 investment in StartupX in which they purchased Participating Preferred shares with a 1.25x Return Preference (7% ownership, fully-diluted). Given their investment structure, what will be their final payout assuming a $75,000,000 Exit and a Preference overhang of $10,000,000 (including VIA).

9. Venture Investor A (VIA) is exiting from a $2,500,000 investment in StartupX in which they received 2,200,000 Convertible Preferred Shares with a 1.5x Return Preference.  Assuming a $50,000,000 exit, Preference Overhang of $10,000,000 (not including VIA), and Total Outstanding Shares of 23,000,000, what will be VIA's final payout (assuming they’re going to do what’s in their best financial interest)?

10. Syndicate Investor A (SIA) invested $50,000 in StartupX in the form of a Convertible Note with a 25% discount. A year later StartupX raised $1,500,000 from Venture Investor A (VIA) at a post-money valuation of $8,000,000. This translated into a $5.00 per share price. How many shares will SIA recieive upon its converson of the Note assuming SIA earned $2500 in interest?

11. In a "Stacked Preferences" scenario, how are returns from a liquidity event distributed among investors in a startup's equity stack?

12. Two founders came together to launch StartupX, an AI Company focused on political activation. They both contributed $50,000 and issued themselves each 2,000,000 shares. What is the initial share price?

13. In a "Pari Passu Preferences" scenario, how are liquidation proceeds distributed among different rounds of preferred shares in a startup's equity stack?

14. StartupX is closing a $250,000 seed round of capital with Venture Investor A (VIA) in which VIA will receive 22% of the company fully-diluted. Assuming there are 2,000,000 shares currently outstanding, how many new shares will be issued to bring VIA onto the cap table?

15. In the context of a waterfall analysis, what is the significance of the term "Last Money In, First Money Out"?