Answered step by step
Verified Expert Solution
Question
1 Approved Answer
b) An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to
b) An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to raise new capital in a distressed setting at $1.50 / share. Now, suppose there is a full ratchet for the old investor. Find the resulting values of each party's ownership and the respective ownership %. b) An investor purchases 200,000 shares with a full ratchet for $2.00 / share. The founders have 400,000 shares. The venture is subsequently forced to raise new capital in a distressed setting at $1.50 / share. Now, suppose there is a full ratchet for the old investor. Find the resulting values of each party's ownership and the respective ownership %
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