Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You founded your firm with a contribution of $500000, receiving 500000 shares of stock. Since then, you sold 50000 stocks to Angel Investors. Now you
You founded your firm with a contribution of $500000, receiving 500000 shares of stock. Since then, you sold 50000 stocks to Angel Investors. Now you are considering raising more capital from a Venture Capitalist. They will invest 15M and would receive 1000000 newly issued shares.
If this is the VC's first investment in the company, what percentage of the firm will they end up owning?
| 32.3% | ||
| 100% | ||
| 3.2% | ||
| 64.5% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started