Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mary has started a media firm with the financial support of her friends and family. A few months after the establishment, she receives a $200,000

Mary has started a media firm with the financial support of her friends and family. A few months after the establishment, she receives a $200,000 check from an angel investor at a post-money valuation of $1 million. After receiving the funding from the angel investor, Marys media firm becomes profitable, and the firm receives a $15 million investment for an$80 million post-money valuation from a venture capital fund. If the angel investor cashes out of its investment at this valuation, what is the angel investors returns?

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

Step: 3

blur-text-image

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

Ebay Tips And Tricks To Increase Your Ebay Sales

Authors: Jessica Wilson

1st Edition

1774854015, 978-1774854013

More Books

Students also viewed these Finance questions

Question

4-1. What is meant by the term you attitude? [LO-1]

Answered: 1 week ago