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Your start-up company needs capital. Right now, you own 100% of the firm with 10.3 million shares. You have received two offers from venture capitalists.
Your start-up company needs capital. Right now, you own 100% of the firm with 10.3 million shares. You have received two offers from venture capitalists. The first offers to invest $3.06 million for 1.16 million new shares. The second offers $2.05 million for 499,000 new shares. a. What is the first offer's post-money valuation of the firm? b. What is the second offer's post-money valuation of the firrn? 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 post-money valuation of the firm? The post-money valuation will be $ (Round to the nearest dollar.) b. What is the second offer's post-money valuation of the firm? The post-money valuation will be $. (Round to the nearest dollar.) c. What is the difference in the percentage dilution caused by each offer? Offer 1 dilution will be - (Round to three decimal places.) Offer 2 dilution will be. (Round to three decimal places.) The difference in dilution will be (Round three decimal places.) d. What is the dilution per dollar invested for each offer? Offer 1 dilution per dollar invested will be. (Round to nine decimal places.) Offer 2 dilution per dollar invested will be. (Round to nine decimal places.)
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