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For round A , shares were issued for $ 1 / share at the post money valuation. It is now 2 years later. Round B
For round A shares were issued for $share at the post money valuation. It is now years later. Round B Investors have determined that the premoney valuation will be $ million and the round B investors will purchase of the company. The Round B investors want the company to issue of the company as optionsprior to their investment. There is no price protection for Round A investors.
a What is the price per share for Round B
b How much money are round B investors investing? What will be the total shares outstanding after the investmentpostmoney?
c What percent of the company will each group have after the investment?
Founders
Seed Investors
Round A Investors
Option Pool
Round B investors
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