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Bob is the owner of AdvTec - a tech start-up- that is looking for financing. BG Ventures, a VC firm, has offered to invest $350,000
Bob is the owner of AdvTec - a tech start-up- that is looking for financing. BG Ventures, a VC firm, has offered to invest $350,000 for a 27% equity stake in the business. Given AdyTec has a $1million pre-money valuation: 1. What is the Post-Money valuation? 2. What is the Bob's equity stake in the business after the investment round? 3. What is the VCs equity stake? 4. What is the relationship between the pre-money valuation and the equity stake the investor receives? post-money $1,350,000; owner's equity stake - 74.07%: VC equity stake-25,93%; the higher the pre-money valuation the lower the investor percentage ownership post-money-$1,000,000; owner's equity stake - 74,07%; VC equity stake - 25.93%; the higher the pre-money valuation the higher the investor percentage ownership post-money -$1,350,000; owner's equity stake - 25.93%: VC equity stake- 74,07%; the higher the pre-money valuation the lower the investor percentage ownership post-money = $1,000,000: owner's equity stake - 25.93% VC equity stake 74.07%: the higher the pre-money valuation the lower the Investor percentage ownership None of the above
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