Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider a start-up that is valued at cost throughout the early stages of its life. Required: a. Round A: Cyprus Ventures invests $261,865, bringing the
Consider a start-up that is valued at cost throughout the early stages of its life. Required: a. Round A: Cyprus Ventures invests $261,865, bringing the post-round valuation to $830,000. What are the ownership percentages for the founder and Cyprus Ventures, if all voting rights are equal? b. Round B: A syndication of Cypress Ventures, Specific Pacific Management, and Mountainhome Capital Group invests $795,000 each. Now determine the ownership for each party assuming the start-up is valued at cost. c. What would be the minimum necessary voting rights for the founders to maintain control through both rounds of financing? (Control is defined as greater than 50% ownership, with percentages rounded to whole numbers.) Complete this question by entering your answers in the tabs below. Round A: Cyprus Ventures invests $261,865, bringing the post-round valuation to $830,000. What are the ownership percentages for the founder and Cyprus Ventures, if all voting rights are equal? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Round B: A syndication of Cypress Ventures, Specific Pacific Management, and Mountainhome Capital Group invests $795,000 each. Now determine the ownership for each party assuming the start-up is valued at cost. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. What would be the minimum necessary voting rights for the founders to maintain control through both rounds of financing? (Control is defined as greater than 50% ownership, with percentages rounded to whole numbers.) Note: Do not round intermediate calculations. Round your answer to the nearest whole number
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