Calculate post- and pre-money valuations

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A VC is planning to invest $ 3 million today in a startup firm. The VC expects the firm to have an exit valuation of $25 million in four years. Existing share pool (for both the founders and for any new management stock options) has 1 million shares. After 2 years, the company expects to raise another round of financing of $2 million from another VC. Both VCs have a discount rate of 50%. Calculate post- and pre-money valuations, the stock ownership required by both the VCs, the price per share, and the number of shares both the VCs will get based on its valuation.

Reference no: EM131566333

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