Comment by vikramhaer

After reading through the quora article, I agree that different tranches may have different terms. However, if investors are buying 70M shares at $1 each, it implies that they believe a share of the company is worth that much. If the company has 3.5B shares, that's an implied valuation of $3.5B. In that sense, the investment does value the company at $3.5B. Whether that valuation (or a higher or lower one) is realized through a liquidity event is a different matter, and if/ when that happens, the valuation would be specific to that point in time.