Please help me answers the question Read the following article (abridged) from the Financial Times and estimate the valuation loss suffered by investors who participated in the funding round led by Softbank one year ago. Klarna ABKlarna's valuation crashes to under $7bn in tough funding roundSequoia's Michael Moritz says investors are in their bunkers' and prices will recoverKlarna.K.KlarnaKlarna was once Europe's most valuable private fintech company © BloombergSiddharth Venkataramakrishnan in London JULY 11 2022Klarna, once Europe's most valuable private tech company, has had its pricetag slashed from$46bn to $6.7bn at a difficult fundraising that highlights the crash in many tech valuations.Michael Moritz, chair of Klarna and a partner at investor Sequoia, blamed "investors suddenlyvoting in the opposite manner to the way they voted for the past few years". He predicted that"after investors emerge from their bunkers, the stocks of Klarna and other first-rate companies willreceive the attention they deserve”.The $800mn fundraising round, announced on Monday, featured new investors includingMubadala, the sovereign wealth fund of the United Arab Emirates, and the Canada Pension PlanInvestment Board in addition to existing investors such as Sequoia and Commonwealth Bank ofAustralia.Just over a year ago, Klarna was valued at $46bn after a $639mn funding round led by Japan'sSoftBank, the investment group behind a disastrous bet in office-sharing group WeWork. The new"pre-money" valuation, excluding the new cash, is only $5.9bn.

Here discuss about the details of the valuation loss which are incurred in the investment in Klarna…

Answered: Read the following article (abridged)…

Read the following article (abridged) from the Financial Times and estimate the valuation loss suffered by investors who participated in the funding round led by Softbank one year ago.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter18: Public And Private Financing: Initial Offerings, Seasoned Offerings, Investment Banks

Section: Chapter Questions

Problem 6SP

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