Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem You founded your own firm two years ago. Initially, you contributed $100,000 of your moncy and, in return, received 1,500,000 shares of stock. Since

image text in transcribed
Problem You founded your own firm two years ago. Initially, you contributed $100,000 of your moncy and, in return, received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. The venture capitalist has agreed to invest $6 million with a post-money valuation of $10 million for the firm. Assuming that this is the venture capitalist's first investment in your company, what percentage of the firm will she end up owning? What percentage will you own? What is the value of your shares

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

Entrepreneurial Finance

Authors: Denise Lee

1st Edition

1948426129, 9781948426121

More Books

Students also viewed these Finance questions

Question

ff 15 15

Answered: 1 week ago