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Private Equity Financing Example You founded your firm two years ago. Initially, you contributed $100,000 of your own money. After incorporation, you owned 1.5 million
Private Equity Financing Example You founded your firm two years ago. Initially, you contributed $100,000 of your own money. After incorporation, you owned 1.5 million shares in your firm. A year ago, you sold 500,000 shares to angel investors. Now you are considering raising additional funding from a venture capitalist. The VC would invest $6 million and receive 3 million newly issued shares. 1. What is the post-money valuation of the firm? What is the premoney valuation? 2. What is your percentage ownership in the firm? What is the value of your shares? What are the angel investor's \& VC's shares worth and how much of the firm do they own? Private Equity Financing Example You founded your firm two years ago. Initially, you contributed $100,000 of your own money. After incorporation, you owned 1.5 million shares in your firm. A year ago, you sold 500,000 shares to angel investors. Now you are considering raising additional funding from a venture capitalist. The VC would invest $6 million and receive 3 million newly issued shares. 1. What is the post-money valuation of the firm? What is the premoney valuation? 2. What is your percentage ownership in the firm? What is the value of your shares? What are the angel investor's \& VC's shares worth and how much of the firm do they own
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