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The paper below illustrates how to value the equity and derivatives created in multi-tranche equity financing. When future financing is contingent of achieving business objectives, it shows how to value the derivatives as forward contracts.  When future financing is certain, it shows how to value the derivatives as call options. The valuation method is based on basic option-pricing principles and requires information from management that is relatively easy to generate. The paper's title is, "Valuing Embedded Derivatives in Equity Tranche Financing".