FINANCE-Accel Growth Fund invested $20 million in Groupon
Question # 00126657
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Updated on: 10/30/2015 11:35 AM Due on: 11/29/2015
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)?
Please show your work step-by step. You can attach an Excel file as well.
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Solution: FINANCE-Accel Growth Fund invested $20 million in Groupon