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Who can help me on these finance questions? The are really tough! An entrepreneur has 1000 shares of the venture. An early investor Invested $10,000

Who can help me on these finance questions? The are really tough!image text in transcribed

An entrepreneur has 1000 shares of the venture. An early investor Invested $10,000 for 2000 shares that included a full ratchet provision ($5 per share). Now. in a subsequent round, an investor is willing to invest $8,000 for a 40% share of the ending equity. The premoney value at the time of this round is $12,000. Based on the information above, this is a "down round." It there had been no ratchet provision, the new investor would need 2000 shares to achieve a 40% interest, and the share price would be $4. With the ratchet, the post money share price would be $2 and the new investor would need 4,000 shares. The early investor would get 3,000 ad

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