Question 12

SPAC, Inc raised its A round at $1.50 per share. Steve invested $1.5 million for one million shares and 30 percent ownership. Now SPAC INC is raising a B round, but the market has turned against it and Acorn Ventures (series B round) will pay only $1.00 per share for 1 million shares.

Calculate Steves ownership in the following scenario (Assume that Steve doesnt participate at all and allows Acorn Ventures to take the whole round.)

Scenario: Steve has full-ratchet antidilution

	A.	31.1%,
	B.	39.16%
	C.	25.70%
	D.	30.1%