[bethly]

Only if it exits at that seed stage: if it raises more money, the number goes up. If the company makes it to Series C+, the number is probably going to be higher than $35M. Which is what taking the average does: for about half of exits that number will be higher and for about half the number will be lower.

Rather than complicating the model here to try to illustrate the difference between exiting at this stage versus raising another round, we went with an approach that demonstrates how preferences work. Even if the number is lower for a Seed company that exits at Series A or higher if it exits at Series C, there is still a number under which you'll get nothing even if the company has a profitable exit.