Question
A founder finds it difficult to raise capital so when he brings in his first outside investor, the investor obtains a full ratchet provision on
A founder finds it difficult to raise capital so when he brings in his first outside investor, the investor obtains a full ratchet provision on his equity investor who invests $400000 for 400000 shares of the company. The founder holds 1000000 shares of the company.
In the next round of financing the company, the company needs $550000 and the post-money value of the company is $1550000.
What is the price per share expected to be in the next round of financing?
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International Business The Challenges of Globalization
Authors: John Wild, Kenneth Wild
8th edition
978-0133867930, 133867935, 978-0133868029, 133868028, 978-0133866247
