$5.(1$ mark$)$ In $2015,$ Brian and Connie founded Raven Systems Inc. as equal partners with $$15,000$ of their own money. Six months later they receive $$50,000$ from Brian$$s mother for a $10\%$ equity stake in the company. What is the pre$-$money valuation?

Answer: $$450,000$

$6.$ A year later Raven Systems achieved problem$/$solution fit and convince an angel investor to invest $$600,000$ on a $$2\mathrm{.}4$ million pre$-$money valuation. After the deal what percentage of the company does the angel investor own?

Answer: $20\%$

$7.(1$ mark$)$ A year after that, Raven Systems found its product$/$market fit and they accept $$2$ million investment from a VC on a post$-$money valuation of $$6$M$.$

a$.$ What percentage would Brian$$s mother own after the deal?

Answer:

b$.$ What percentage would the angel own after the deal?

Answer:

$8.(2$ marks$)$ A year after that, Raven Systems is sold for $$100$ million. How much does each party get in cash?

Connie:

Brian:

Brian$$s Mother:

Angel investor:

VC: