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Your​ start-up company needs capital. Right​ now, you own 100% of the firm with 10.0 million...

Your​ start-up company needs capital. Right​ now, you own 100% of the firm with

10.0 million shares. You have received two offers from venture capitalists. The first offers to invest $3.00 million for 1.00 million new shares. The second offers $2.00 million for 500,000 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?

Offer 1 dilution will be

Offer 2 dilution will be

d. What is the dilution per dollar invested for each​ offer?

Offer 1 dilution will be

Offer 2 dilution will be

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Expert Solution

jeff jeffy answered 1 year ago
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