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The exact stakes is not given. Calculate the percentage they own. WizzyWidget is a promising startup. They project the following cumulative cash balances (in millions):

image text in transcribed The exact stakes is not given. Calculate the percentage they own.

WizzyWidget is a promising startup. They project the following cumulative cash balances (in millions): 2 3 4.6 4 5 1.2 1.6 -2.7 2.6 Their conclusion is that they would need to raise 5 million to meet their needs. However this would be too dilutive and therefore they set out to raise 3 million, i.e. what is needed to make it through the first two years, and then raise an additional 2 million in a Series B round. The company expects an exit at the end of year 4 at a valuation of 25 million. The CEO agrees on a 50% discount rate. Calculate the stakes of the founder (assume one single founder with 100% of the shares) the Series A investor and the Series B investor

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