What is the founders year-six ownership percentage

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Problem

Suppose the founder wants to have a venture investor inject $20,000,000 in four rounds of $5,000,000 at times 0, 1, 2 and 3 with a time 6 exit value of $300,000,000. If the founder anticipates returns of 75%, 65%, 40% and 25% for rounds 1, 2, 3 and 4, respectively, what percent of ownership is sold during the first round? During the second round? During the third round? What is the founders' year-six ownership percentage?

Reference no: EM133791846

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