Your start-up company needs capital right now you own 100


Your start-up company needs capital. Right? now, you own 100% of the firm with 9.6 million shares. You have received two offers from venture capitalists.

The first offers to invest $2.95 million for 1.02 million new shares. The second offers $1.93 million for 543,000 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?

d. What is the dilution per dollar invested for each offer?

a. What is the first? offer's post-money valuation of the firm?

The post-money valuation will be $_____? (Round to the nearest dollar.)

b. What is the second offer's post-money valuation of the? firm?

The post-money valuation will be $_____ ?(Round to the nearest dollar.)

c. What is the difference in the percentage dilution caused by each offer?

Offer 1 dilution will be_____ ?(Round to three decimal? places.)

Offer 2 dilution will be ______?(Round to three decimal places.)

The difference in dilution will be ______ ? (Round to three decimal? places.)

d. What is the dilution per dollar invested for each? offer?

Offer 1 dilution per dollar invested will be______? (Round to nine decimal? places.)

Offer 2 dilution per dollar invested will be ______??(Round to nine decimal? places.)

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Financial Management: Your start-up company needs capital right now you own 100
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