Suppose that the founders of Stacys Coffee decide that they need $6,000,000 and they want to raise
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- Suppose that the founders of Stacy’s Coffee decide that they need $6,000,000 and they want to raise this capital in two rounds. At t=0, your venture capital firm invests $3,000,000, and at t=2, Vulture Ventures invest $22,000,000. Both investors want to earn a return of 40% per year on investment. What is Vulture Venture’s desired ownership fraction at t=2?
2) What is investor 1’s desired ownership fraction at t=0?
3)What is the price per share at t=0? Assume that the founders still want 160,000 shares.
4)What is the price per share at t=2?
Related Book For
Entrepreneurship Successfully Launching New Ventures
ISBN: 9780132555524
4th Edition
Authors: Bruce R. Barringer, R. Duane Ireland
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