1. Amir is the founder of a company and owner of 3.1 million of its shares. Two years ago, the company raised $1.0 million from outside investors through an issue of shares. The issue provides these outside shareholders with a full ratchet provision. Recently the company raised $1.25 million from a venture capitalist for 50% of the company's equity on a post-money basis. What number of shares will the venture capitalist receive? Express your answer in millions to two decimal places i.e. 4.2 million shares should be expressed as 4.2

Answer rating: 100% (QA)

To determine the number of shares the venture capitalist will receive we need to consider the full r... View the full answer