Data Initially: 100,000 $ own capital or 1,500,000 shares Later: 500,000 shares to angel investors Now: 6 m$ from VC with post-money valuation of 10 m$ 11 Solution VC ownership percentage: 6/10 = 60% Pre-money valuation: 10-6=4 m$ Pre-money shares outstanding = 1,500,000+ 500,000 = 2,000,000 Share price: 4 m$ / 2,000,000 shares = 2 $ per share VC shares: 6 m$ /2 $ per share= 3,000,000 shares Total number of shares: 2,000,000 + 3,000,000 = 5,000,000 Own percentage of the firm: 1,500,000 / 5,000,000 = 30% Post-transaction own value: 1,500,000 shares x 2 $ per share = 3 m$ 10

Data - Initially: 100,000$ own capital or 1,500,000 shares - Later: 500,000 shares to angel investors - Now: 6m$ from VC with post-money valuation of 10m$ Solution - VC ownership percentage: 6/10=60% - Pre-money valuation: 106=4m$ - Pre-money shares outstanding =1,500,000+500,000=2,000,000 - Share price: 4m$/2,000,000 shares =2$ per share - VC shares: 6m$/2$ per share =8,000,000 shares - Total number of shares: 2,000,000+$,000,000=5,000,000 - Own percentage of the firm: 1,500,000/5,000,000=30% - Post-transaction own value: 1,500,000 shares 2$ per share =$m$