Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your start-up company needs capital. Right now, you own 100% of the firm with 10.2 million shares. You have received two offers from venture capitalists.

image text in transcribed

Your start-up company needs capital. Right now, you own 100% of the firm with 10.2 million shares. You have received two offers from venture capitalists. The first offers to invest $3.06 million for 1.01 million new shares. The second offers $2.01 million for 511,000 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 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 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 to 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.)

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

Bitcoin 101 A Beginner S Guide To Digital Currency

Authors: Nicholas Mohr

1st Edition

B0BW27PC43

More Books

Students also viewed these Finance questions

Question

Describe bank payment rules, including posting and settlement.

Answered: 1 week ago