Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You founded your own firm three years ago. You initially contributed $65330 of your own money and in return you received 1436732 million shares of

You founded your own firm three years ago. You initially contributed $65330 of your own money and in return you received 1436732 million shares of stock. Since then, you have sold an additional 1121824 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5025166 million and would receive 2726097 million newly issued shares in return. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trade Ipos Online

Authors: Matthew D. Zito ,Matt Olejarczyk

1st Edition

0471443026, 978-0471443025

More Books

Students also viewed these Finance questions