Question
Yourstart-up company needs capital. Rightnow, you own 100% of the firm with 9.7 million shares. You have received two offers from venture capitalists. The first
Yourstart-up company needs capital. Rightnow, you own 100% of the firm with 9.7 million shares. You have received two offers from venture capitalists. The first offers to invest $2.99 million for 1.05 million new shares. The second offers$2.07 million for 492,000 new shares.
a. What is the firstoffer's post-money valuation of thefirm?
b. What is the secondoffer's post-money valuation of thefirm?
c. What is the difference in the percentage dilution caused by eachoffer?
d. What is the dilution per dollar invested for eachoffer?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
