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[answered] Accel Growth Fund IRR on Equity Investment Series E preferr


In November 2009, Accel Growth Fund invested $20 million in Groupon by buying 2,932,553 shares of Series E convertible preferred stock. What was the realized IRR of this investment, if ?the fund sold at IPO and "each share of Series E preferred 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.
Accel Growth Fund IRR on Equity Investment

 

Series E preferred stock

 

Equity Value Year 0

 

Shares

 

Price at Issue

 

Class A Common Stock

 

Conversion ratio

 

Converted Shares

 

IPO Price Nov. 4, 2011

 

Equity Value Year 2 IRR $20,000,000

 

2,932,553 12 Value given in problem

 

Formula/Calculation/Analysis required

 


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