Suppose the following balance sheet for Uber after second round of venture financing.

Second Stage Market Value Balance Sheet ($mil)

Assets ---------------------------------------------Liabilities and Equity

Cash from new equity $4.0 New Equity from 2^nd stage $4.0 (25%)

Fixed Assets $1.5 Equity From 1^st stage $6.0 (37.5%)

Other Assets $10.5 Your original Equity $6.0 (37.5%)

Total Value $16.0 Total Value $16.0

Suppose Uber is able to convince the investors that theres a big market for the product and big bucks to be made in the market. Now lets assume that new investors decide to invest $10 million and require 20% of the company.

What will be the total value of the company after this new round of financing?

b. What will be the equity for the 1^st stage investor? c. What will be the equity for the 2^nd stage investor? d. What will be the amount of equity for the original investor?