Question
Yourstart-up company needs capital. Rightnow, you own 100 % of the firm with 10.1 million shares. You have received two offers from venture capitalists. The
Yourstart-up company needs capital. Rightnow, you own 100 % of the firm with 10.1 million shares. You have received two offers from venture capitalists. The first offers to invest $ 2.94 million for 1.06 million new shares. The second offers$ 1.93 million for 539,000 new shares.
a. What is the firstoffer's post-money valuation of thefirm? (Round to the nearest dollar)
b. What is the secondoffer's post-money valuation of thefirm? (Round to the nearest dollar)
c. What is the difference in the percentage dilution caused by eachoffer? (Round to three decimal places).
d. What is the dilution per dollar invested for eachoffer? (Round to nine decimal places).
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