Valuation and Ownership After Equity Issuance
Erica owns all 4 million shares of her company, CoralTech. A new partner is offering to invest 2.212 million in exchange for 1.5 million shares.
Erica owns all 4 million shares of her company, CoralTech. A new partner is offering to invest 2.212 million in exchange for 1.5 million shares.
✅ Post-money = (5.5) shares × $1.475 (2.212/ 1.5) = 8.113 million
✅ Partner Ownership = 1.5 / 5.5 × 100 = 27.273%