Question
In: Finance
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
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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