Question
QBER is a new venture and now seeking for $10 million or more A round venture capital. There are two venture capital firms willing to
QBER is a new venture and now seeking for $10 million or more A round venture capital. There are two venture capital firms willing to give offer to QBER. Given the following information, calculate each venture capital firm's implied post-money valuation and pre-money valuation. Given the calculated result, which offer fits better for QBER's need? Briefly explain why do you think so. Offer 1 (from GT Venture Capital Group): It is willing to invest $12million to get 25% of QBER's ownership. Offer 2 (from MM Venture Capital): It offers $20 million to get 36% of OBER's ownership.
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