What are the related pre-money and post-money valuations

Assignment Help Business Management

Reference no: EM133627189

Q1. Suppose you are considering a venture conducting a current financing round involving an issue of 100,000 new shares at $3. The existing number of shares outstanding is 200,000. What are the related pre-money and post-money valuations?

Q2. Ratchets.com anticipates that it will need $15,000,000 in venture capital to achieve a terminal value of $300,000,000 in five years.

Assuming it is a seed stage firm with no existing investors, what annualized return is embedded in their anticipation?
Suppose the founder wants to have a venture investor inject $15,000,000 in three rounds of $5,000,000 at time 0, 1 and 2 with time 5 exit value of $300,000,000. If the founder anticipates returns of 70%, 50% and 30% for round 1, 2 and 3, respectively, what percent of ownership is sold during the first round? During the second round? During the third round? What is the founders' year-five ownership percentage?
Assuming the founder will have 10,000 shares, how many shares will be issued in rounds 1, 2 and 3 (at times 0, 1 and 2)?
What is the second round share price derived from the answers in Parts B and C?

Reference no: EM133627189

Questions Cloud

Reviewing the internal control structure of cashiers office : As a new manager, you have been reviewing the internal control structure of the cashier's office. The cashier's office is small with four employees.

How would you go about identifying your target market : How would you go about identifying your target market and understanding the specific needs of your customers?

Can begin to reduce the economic performance of a business : Excessive financial leverage -too much debt - can begin to reduce the economic performance of a business. Explain which is an ideal level of debt for a firm.

Explore traits of a responsible leader : Explore traits of a responsible leader and how to demonstrate responsible leadership in human resource management, especially during turnaround management;

What are the related pre-money and post-money valuations : The existing number of shares outstanding is 200,000. What are the related pre-money and post-money valuations?

Analyse the leader using two concepts drawn from block 2 : The material we are drawing from is B208 Developing leadership: Block 2 Leadership as leader perspectives.

Would you also collaborate with your organizations recruiter : Would you also collaborate with your organization's recruiter? Why or why not?

How the war in the ukraine affects the four objective : Research the current state of play of the following macroeconomic objectives for the UK, including relevant current statistics.

Describe brainstorming technique : Choose one method of brainstorming and brainstorm ideas about your topic. The ways of brainstorming were discussed; free writing, listing, mind-mapping.

User Account

All Pages