Question
Magic So)ware, LLC raised $150,000 from family and friends in 2013. In exchange, family & friends received a converCble note with a 15% discount. In
Magic So)ware, LLC raised $150,000 from family and friends in 2013. In exchange, family & friends received a converCble note with a 15% discount. In 2015, Magic So)ware raised $400,000 from a group of Angels. They also received a converCble note with a 20% discount.
In 2016, Magic raised $3MM from Top Hat Ventures. The round was priced at $6MM Pre-Money ValuaCon.
The founders own 10,000,000 shares.
How much equity will F&F, Angel, and Top Hat will receive in the company?
Please have the process.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
