Last year, start-up firm RGP & Co. raised $300,000 in its first round of financing (“Series A”) from a venture capitalist in exchange for a 25% ownership stake. Now, it is seeking a second round of financing (“Series B”) in the amount of $300,000 from a different venture capitalist. (RM Chapter 5)
a. What is the premoney and postmoney valuations at the time of the Series A financing?
b. What is the premoney and postmoney valuations at the time of the Series B financing?
c. What is the ownership percentage of the first venture capitalist after the Series B financing?