Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. You founded a drug discovery company S years ago. You initially contributed $50,000 of your money and, in return received 500,000 shares of stock.

image text in transcribed
1. You founded a drug discovery company S years ago. You initially contributed $50,000 of your money and, in return received 500,000 shares of stock. You have also sold 500,000 shares to angel investors to bring the drugs through animal studies. You now need more funding from VCs to clear the drugs through clinical trials a. The VC would invest $100 million and would receive 100,000,000 newly issued shares. What is the post-money valuation? Post-money valuation Assuming that this is the VC's first investment in your company, what percentage of the firm will she end up owning? b. % of firm owned by What percentage will you own? What is the value of your shares? c

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Socionomic Theory Of Finance

Authors: Robert R. Prechter

1st Edition

0977611256, 978-0977611256

More Books

Students also viewed these Finance questions

Question

What do you believe was the cause of the turnover problem?

Answered: 1 week ago