Question
Founder and Angel Rounds. Decide to launch the startup, you file the docs for a C-Corporation and start the company with 20M treasury shares and
Founder and Angel Rounds.
Decide to launch the startup, you file the docs for a C-Corporation and start the company with 20M treasury shares and immediately award yourself 2M shares. After developing a simple prototype of your product, you raised $2 million from an angel for seed financing.
When you pitched the angel round, you and the angel investor agreed that the company had the ability to become a company that was valued at $250M++ 7 years from now. The angel thought that the future 7-year value of the company could well-exceed $250M, but taking into risk, he used an expected value of $200M. To further account for risk, the angel priced out his investment to earn a 20X return. Find
the dollar amount invested by the seed investor
the number of shares of stock owned by the Founder
the seed investor's (angel's) shares of stock owned
the total number of shares of stock outstanding.
the % of the total stock owned by the Founder, the Angel, and the total
the post-money value of the company in the seed round
the pre-money value of the company in the seed round
the price per share paid by the angel
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