For round A$,$ shares were issued for $$1/$share at the post money valuation. It is now $2$ years later. Round B Investors have determined that the pre$-$money valuation will be $$10$ million and the round B investors will purchase $50\%$ of the company. The Round B investors want the company to issue $25\%$ of the company as options$$prior to their investment.$$ 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 investment$/$post$-$money?

c$)$ What percent of the company will each group have after the investment?

Founders

Seed Investors

Round A Investors

Option Pool

Round B investors