Question: 1. If a VC offers a term sheet with a $4M investment on a $10M pre-money valuation, what is the post money? What percentage of

1. If a VC offers a term sheet with a $4M investment on a $10M pre-money valuation, what is the post money? What percentage of the equity will the VC own after the investment?

2. If an entrepreneur is offering 25% of her company for $3M, what is the pre-money valuation?

3. If a VC owns 22% of a startup after a $1.5M investment, what is the pre-money valuation?

4. If a VC offers a $3.0M investment on a $6M pre-money, and the founder counters with a $2.5M investment on a $7M pre-money, what is the difference in the amount of ownership the founder would retain?

5. If a VC offers a $15M investment on a $45M post, what percent does the VC own after the investment?

6. If a VC offers a $15M investment on a $45M pre, what percent does the VC own after the investment? what percent does the VC own?

7. In the previous two problems, explain the importance of being very clear on pre vs. post in the calculation. What is the impact to the VC in this case by changing from a post to a pre calculation?

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