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Your start - up company needs capital. Right now, you own 1 0 0 % of the firm with 9 . 7 9 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?
a What is the first offer's postmoney valuation of the firm?
The first offer's postmoney valuation will be $ Round to the nearest dollar.
b What is the second offer's postmoney valuation of the firm?
The second offer's postmoney valuation will be Round to the nearest dollar.
c What is the difference in the percentage dilution caused by each offer?
The dilution caused by the first offer will be
Round to three decimal places.
The dilution caused by the second offer will be
Round to three decimal places.
The difference in dilution will be Round to three decimal places.
d What is the dilution per dollar invested for each offer?
The dilution per dollar invested for the first offer will be Round to nine decimal places.
The dilution per dollar invested for the second offer will be
Round to nine decimal places.
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