Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. Your start-up company needs capital. Right now, you own 100% of the firm with 9.6 million shares. You have received two offers from venture
3. Your start-up company needs capital. Right now, you own 100% of the firm with 9.6 million shares. You have received two offers from venture capitalists. The first offers to invest $3.04 million for 1.08 million new shares. The second offers $2.08 million for 512,000 new shares. a. What is the first offer's post-money valuation of the firm? b. What is the second offer's post-money valuation of the firm? c. What is the difference in the percentage dilution caused by each offer? d. What is the dilution per dollar invested for each offer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started