Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The startup management is looking to raise venture capital. The pre-money valuation is $10,000,000 with two co-founders holding 40% of the shares each and two investors holding 10% respectively. Now, the platform receives a venture capital injection of $10,000,000. Answer the following questions:
i. What is the post-money valuation in $?
ii. How much equity does each founder hold in % and $ after the capital injection?
iii. How much equity does the venture capital firm hold in % and $ after the capital injection?
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