At the company's founding, on January 1 of 2004, the founders buy two

million shares at $0.01 each, for a total investment of $20,000. After making

considerable progress, they successfully raise a first round of financing from

Starburst Ventures: $1 million at $1 per share, for a total number of shares issued

of 1,000,000. How much ownership% does everyone have? What is the pre- and

post-money valuation?

Task 2) In the second round of investment, we see that a new firm, Nova

Ventures, has invested $3,750,000 for a 33.33% ownership stake. Obviously, this

dilutes both the founders' and Starburst Ventures' ownership stakes. What are

the new ownership% of all shareholders?