Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Susan starts an electric bicycle company with her savings of $ 2 0 0 , 0 0 0 . Her new business is successful, and

Susan starts an electric bicycle company with her savings of $200,000. Her new business is successful, and she attracts a $2 million investment from venture capital firm A at a post-money valuation of $5 million. Susan continues to grow her business and meets additional milestones. After seeing that the milestones have been met, venture capital firm A and a new venture capital firm, B, invests a combined $15 million into Susans electric bicycle firm at a post-money valuation of $40 million. What is Susans ownership of the firm after this investment?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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