Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Five years ago, you established your own business. In exchange for your initial $300,000 personal contribution, you were given 3 million shares of stock. You

Five years ago, you established your own business. In exchange for your initial $300,000 personal contribution, you were given 3 million shares of stock. You have since sold three million more shares of stock to angel investors. Let's say you received $600,000. At this point, you might think about getting funding from a venture capital company. In exchange for its $6 million investment, this venture capital firm would get 5 million freshly issued shares. What are the pre-money valuations of your shares? What are the post-money valuations of your shares? What was your ownership stake in the business just after the angel investor made their investment? What are the post-money valuations of Angel Investor shares

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_2

Step: 3

blur-text-image_3

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

Algorithmic Finance A Companion To Data Science

Authors: Christopher Hian-ann Ting

1st Edition

9811238308, 978-9811238307

More Books

Students also viewed these Finance questions

Question

Describe the amyloid cascade hypothesis.

Answered: 1 week ago