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Your start - up company needs capital. Right now, you own 1 0 0 % of the firm with 9 . 9 7 million shares.
Your startup company needs capital. Right now, you own of the firm with million shares. You have received two offers from venture capitalists. The first offers to invest $ million for million new shares. The second offers $ million for new shares
a What is the first offer's postmoney valuation of the firm?
b What is the second offer's postmoney valuation of the firm?
c What is the difference in the percentage dilution caused by each offer?
d What is the dilution per dollar invested for each offer?
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