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Suppose that the founders of Stacy's Coffee decide that they need $2,000,000 and they want to raise this capital in two rounds. At t=0, your
Suppose that the founders of Stacy's Coffee decide that they need $2,000,000 and they want to raise this capital in two rounds. At t=0, your venture capital firm invests $1,000,000, and at t=2, Vulture Ventures invest $1,000,000. Both investors want to earn a return of 40% per year on investment. What is Vulture Venture's desired ownership fraction at t=2 ? 41.71% 21.28% 58.39% 29.79% What is investor 1 's desired ownership fraction at t=0 ? 40% 25% 59.41% 83.17% What is the price per share at t=0 ? Assume that the founders still want 150,000 shares. $32.55 $1.35 $10 $4.56 What is the price per share at t=2 ? $1.68 $2.64 $8.31 $10
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