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3. (20 points) The founders of Atakama Desert Adventure are anticipating a big rebound of business after the pandemic, which will allow them to achieve
3. (20 points) The founders of Atakama Desert Adventure are anticipating a big rebound of business after the pandemic, which will allow them to achieve a $10,000,000 venture value at the end of year 3. There is a one-time initial $1,000,000 in venture financing by the 1st venture investor. The founders have organized with 1,000,000 shares and are willing to "grant the 1st venture investor a 100% return on their business plan projections. a f. Suppose the 1st venture investor doesn't buy the business plan and wants to price the deal assuming a second venture investor in year 2 of $1,000,000 with a 40% return. What will change? Please calculate the ownership percentage for the 2nd venture investor, 1st venture investor, and the founders, respectively. 3. (20 points) The founders of Atakama Desert Adventure are anticipating a big rebound of business after the pandemic, which will allow them to achieve a $10,000,000 venture value at the end of year 3. There is a one-time initial $1,000,000 in venture financing by the 1st venture investor. The founders have organized with 1,000,000 shares and are willing to "grant the 1st venture investor a 100% return on their business plan projections. a f. Suppose the 1st venture investor doesn't buy the business plan and wants to price the deal assuming a second venture investor in year 2 of $1,000,000 with a 40% return. What will change? Please calculate the ownership percentage for the 2nd venture investor, 1st venture investor, and the founders, respectively
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