Ch14/Q2

Your start-up company needs capital. Right now, you own 100% of the firm with 9.8 million shares. You have received two offers from venture capitalists. The first offers to invest $2.98 million for 1.02 million new shares. The second offers $2.05 million for 459,000 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