funnywalrus

I hope this doesn't come across as too stupid of a question. There is so much insight for more complex situations, but nothing I saw that clearly explained this simple situation. Want to make sure I'm not over/under thinking this.

Let's say a simple LLC business has two standard post-money SAFEs....

- Investor A contributed $40,000 at a post-money valuation cap of $400,000

- Investor B contributed $50,000 at a post-money valuation cap of $800,000

- There are no other investors

Questions: If the business is fully sold for $600,000 all cash, does Investor B still receive 6.25% of the acquisition cash even if the sale is under their valuation cap?