Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose a startup company has the following information: (15 points) Founders shares before VC investment: 2.5 million Pre-money valuation: $10 million VC investment: $5 million

Suppose a startup company has the following information: (15 points)

Founders shares before VC investment: 2.5 million

Pre-money valuation: $10 million

VC investment: $5 million

After a VC investment, the company issues a new 10% employee option pool. Calculate the values of A E in the following table:

Class

Shares

Preferred Price

Valuation

%

Founders

2,500,000

A

Employee Pool

B

10%

Venture Invests

C

D

$5,000,000

20%

Total

E

D

$15,000,000

100%

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

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

6th Edition

0201538997, 978-0201538991

More Books

Students also viewed these Finance questions