Question
A venture capital company buys 400,000 shares of a start-up's stock for $8.80 million. If the company has 3.5 million shares outstanding prior to the
A venture capital company buys 400,000 shares of a start-up's stock for $8.80 million. If the company has 3.5 million shares outstanding prior to the purchase, what is the company's pre-money value? What is its post-money value?
Pre-money value:
Post-money value:
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
