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 9.6 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 9.6 million shares. You have received two offers from venture capitalists. The first offers to invest $ 3.09 million for 1.05 million new shares. The second offer $ 2.07 million for 464,000 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?

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

Contemporary Economics An Applications Approach

Authors: Robert Carbaugh

8th Edition

1138652199, 978-1138652194

More Books

Students also viewed these Finance questions

Question

Does the person have her/his vita posted?

Answered: 1 week ago

Question

What is cultural tourism and why is it growing?

Answered: 1 week ago