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Suppose the following balance sheet for Winbnb after second round of venture financing. Second Stage Market Value Balance Sheet ($mil) Assets Cash from new

 

Suppose the following balance sheet for Winbnb after second round of venture financing. Second Stage Market Value Balance Sheet ($mil) Assets Cash from new Equity Fixed Assets Liabilities and Equity $6.00 Equity From 2nd stage $5.50 $4.00 Equity From 1st stage $5.50 Other Assets $12.00 Your original Equity $11.00 Total $22.00 $22.00 Suppose the company is able to convince the investors that there's a big market for the company and wants to negotiate the third round venture financing. Now let's assume that new investors decide to invest $15 million and require 20% of the company. a. What will be the total value of the company after this new round of financing? b. What will be the equity for the 1st stage investor? (sample answer: $30.60m) (sample answer: $30.60m) c. What will be the equity for the d. What will be the equity for the original investor? 2nd stage investor? (sample answer: $30.60m) (sample answer: $30.60m)

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