Answered step by step
Verified Expert Solution
Link Copied!

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 $273,910, bringing the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Consider a start-up that is valued at cost throughout the early stages of its life. Required: a. Round A. Cyprus Ventures invests $273,910, bringing the post-round valuation to $860,000. 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 $840,000 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 $273,910, bringing the post-round valuation to $860,000. 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. Complete this question by entering your answers in the tabs below. Round A: Cyprus Ventures invests $273,910, bringing the post-round valuation to $860,000. 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 $840,000 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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Complete Guide To Property Finance

Authors: Richard W J Brown

1st Edition

1739832027, 978-1739832025

More Books

Students also viewed these Finance questions

Question

8. Set goals that relate to practice as well as competition.

Answered: 1 week ago