Homework Answers
% ownership = Number of shares owned/Total number of shares
= 1 million/5 million
= 20%
i.e. A
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You founded your own firm three years ago. You initially contributed $200,000 of your own money...
You founded your own firm three years ago. You initially contributed $200,000 of your own money...
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 4 million newly issued shares in return. After the venture capitalist's investment, the post-money valuation of your...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000 of your money and, in return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. This venture capitalist would invest $6 million and would receive 3,000,000 newly issued shares. Assuming that this is the venture capitalist's first investment in your company, what percentage of...
Three years ago, you founded your own company. You invested $108,000 of your own money and...
Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 2.00 6.50 Number of Shares 1,050,000 650,000 650,000 Based on the information provided above (and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...
Three years ago, you founded your own company. You invested $110,000 of your own money and...
Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 3.00 3.00 Number of Shares 1,200,000 700,000 500,000 Based on the information provided above and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...
A) An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares...
A) An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. The entrepreneur now sells another 400,000 shares of stock to a venture capitalist for $2 million. What is the post-money valuation for the last round of funding in dollars? B) In previous question, suppose the company intends to go public by selling 3,000,000 new shares. Moreover, assume the company has no debt...
Starware Software was founded last year to develop software for gaming applications. The founder initially invested...
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $700,000 and received 10 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $1.00 million and wants to own 13% of the company after the investment is completed. a. How many shares must the venture capitalist receive to end up with 13%...
Three years ago, you founded your own company. You invested $ 100 comma 000$100,000 of your...
Three years ago, you founded your own company. You invested $ 100 comma 000$100,000 of your own money and received 5.05.0 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Price ($) Number of Shares Series B 0.60 1,200,000 Series C 3.50 700,000 Series D 5.005.00 600,000 a. What is the pre-money valuation for the Series D funding round? b. What is the post-money valuation for the Series D funding...
Three years ago, you founded your own company. You invested $ 106 000 of your own money and received 5.3 million Class A preference shares. Your company has since been through three additional rounds...
Three years ago, you founded your own company. You invested $
106 000 of your own money and received 5.3 million Class A
preference shares. Your company has since been through three
additional rounds of financing.
Three years ago, you founded your own company. You invested $106 000 of your own money and received 5.3 million Class A preference shares. Your company has since been through three additional rounds of financing. Price (S) 0.50 2.50 6.50 Round Number of shares...
The firm you founded currently has 13 million shares, of which you own 3 million. You...
The firm you founded currently has 13 million shares, of which you own 3 million. You are considering an IPO where you would sell 3 million shares for $ 17 each. If all of the shares sold are primary shares, how much will the firm raise? What will be your percentage ownership of the firm after the IPO?
Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment...
Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipment and clothing for recreational activities such as camping, skiing, and hiking. So far, your company has gone through three funding rounds: Round Date Investor Shares Share Price ($) Series A Feb. 2013 You 600,000 1.00 Series B Aug. 2014 Angels 1,300,000 1.00 Series C Sept.2015 Venture Capital 2,000,000 2.50 It is now 2016 and you need to raise additional capital to expand your business....
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 4 million newly issued shares in return. After the venture capitalist's investment, the post-money valuation of your...
Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000 of your money and, in return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. This venture capitalist would invest $6 million and would receive 3,000,000 newly issued shares. Assuming that this is the venture capitalist's first investment in your company, what percentage of...
Three years ago, you founded your own company. You invested $108,000 of your own money and received 5.4 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 2.00 6.50 Number of Shares 1,050,000 650,000 650,000 Based on the information provided above (and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...
Three years ago, you founded your own company. You invested $110,000 of your own money and received 5.5 million shares of Series A preferred stock. Your company has since been through three additional rounds of financing. Round Series B Series C Series D Price ($) 0.70 3.00 3.00 Number of Shares 1,200,000 700,000 500,000 Based on the information provided above and that each share of all series of preferred stock is convertible into one share of common stock), what fractions...
Three years ago, you founded your own company. You invested $
106 000 of your own money and received 5.3 million Class A
preference shares. Your company has since been through three
additional rounds of financing.
Three years ago, you founded your own company. You invested $106 000 of your own money and received 5.3 million Class A preference shares. Your company has since been through three additional rounds of financing. Price (S) 0.50 2.50 6.50 Round Number of shares...
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