Your start-up company needs capital. Right now, you own
100 % 100%
of the firm with
9.99.9
million shares. You have received two offers from venture capitalists. The first offers to invest
$ 3.02$3.02
million for
1.171.17
million new shares. The second offers
$ 2.03$2.03
million for
461 comma 000461,000
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?