Question
You founded your own company two years ago. Initially you contributed RM200,000 of your own money and in return received 3 million shares of stock.
You founded your own company two years ago. Initially you contributed RM200,000 of your own money and in return received 3 million shares of stock. Since then, you have sold an additional 1,000,000 shares to angel investors. Now you are considering raising even more capital from a venture capitalist (VC). This VC would invest RM12 million and would receive 6 million newly issued shares.
i. Calculate the post money valuation. (4 marks)
ii. Find the percentage of the firm that VC end up owning. (3 marks)
iii. Calculate the percentage of the firm you owned. (3 marks)
iv. Find the value of your share. (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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