1) The pre-money valuation of a company is $15,000,000, they are raising $3,000,000 and have 400,000 shares issued and outstanding as well as an option pool of 200,000.
A. What is the post money valuation of the company?
B. What % of the total shares will the venture capitalist own?
2) Using the figures in #2 above if the liquidation preference is 2x and the participation is 20% how much will be available for the common shareholders if the company is sold for $20 million?