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Tom & Jerry Mousetraps LLC started out in a garage some years ago when the founders invested $1.2 million of their own money. The following
Tom & Jerry Mousetraps LLC started out in a garage some years ago when the founders invested $1.2 million of their own money. The following year, family and friends invested $1.6 million at a pre-money valuation of $2.9 million. A) What share of the firm do the founders own now? B) What is their return on their investment so far? Angel investor Mr. A later acquires a 10.00% stake in the business for a post-money valuation of $9.0 million. Soon after, Mr. A brings in 2 vc friends. Together, the 3 of them invest a total of $2.0 million in equal shares for a post-money valuation of $16.0 million- C) What share of the firm is now owned by ... ... the founders? ... family & friends? Mr. A? his VC friends? D) Compute the total percentage return on their total dollar investment for ... ... the founders? ... family & friends? Mr. A? %
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