You have started a company and are in luck — a venture capitalist has offered to invest. You own 1 0 0 % of the company with 5 . 2 3 million shares. The VC offers $ 1 . 0 8 million for 7 8 0 , 0 0 0...

You have started a company and are in

luck

—

a

venture capitalist has offered to invest. You own

1
0
0

%

of the company with

5
.
2
3

million shares. The VC offers

$

1
.
0
8

million for

7
8
0

,

0
0
0

new shares.

a.

What is the implied price per
share?

b.

What is the
post-money
valuation?

c.

What fraction of the firm will you own after the
investment?

You have started a company and are in

luck

—

a

venture capitalist has offered to invest. You own

1
0
0

%

of the company with

5
.
2
3

million shares. The VC offers

$

1
.
0
8

million for

7
8
0

,

0
0
0

new shares.

a.

What is the implied price per
share?

b.

What is the
post-money
valuation?

c.

What fraction of the firm will you own after the
investment?

Aug 09, 2022

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