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Suppose Tommy is able to negotiate a $1,000,000 investment in the company FoodNow on a $4,000,000 pre-money valuation for FoodNow. FoodNow creates a 10% option
Suppose Tommy is able to negotiate a $1,000,000 investment in the company FoodNow on a $4,000,000 pre-money valuation for FoodNow. FoodNow creates a 10% option pool for its employees alongside the investment. If there are 2,000,000 outstanding shares amongst the founders and earlier investors, what is the number of shares for the option pool? a. 222,222 b. 358,974 c. 285,714 d. None of the above
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