Part 1 (ch24) Questions Numeric
Last updated: 12/02/2025
Type your answers with “.” instead of “,”! For numerical answers, use 2 decimal places. For instance, if your answer is 0.12345 or 12.345%, type, “12.34” in the box.
Question 1
You founded your own firm two years ago. Initially, you contributed 0.055 million of your money and, in return, received 1 million shares of stock. Since then, you have sold an additional 0.75 million shares to angel investors. You are now considering raising even more capital from a venture capitalist. The venture capitalist has agreed to invest 3 million and receive 2 million shares. Assuming that this is the venture capitalist’s first investment in your company.
What is the post-money valuation, in million?
Assuming that this is the venture capitalist’s first investment in your company, what percentage of the firm will he or she end up owning?
What percentage will you own?
What is the value of your shares, in million?
Answers:
5.625
53.333
26.667
1.5
Question 2
Q: A company has raised capital as follows (in millions USD).
Series A Pre-Money: 3.183 & Series A Post-Money: 5.935
Series B Pre-Money: 49.361 & Series B Post-Money: 97.22
Series C Pre-Money: 148.355 & Series C Post-Money: 202.345
How much did the company raised in each round, in millions?
Round A: , Round B: , Round C:
Assuming no other securities were issued, what fraction of the firm’s shares were held by common shareholders (founders and employees) after each round, in percent?
Round A: , Round B: , Round C:
Answers:
Round A: 5.935 - 3.183 = 2.752
Round B: 97.22 - 49.361 = 47.859
Round C: 202.345 - 148.355 =53.99
Round A: 3.183 / 5.935 = 53.631
Round B: 49.361 / 97.22 * 3.183 / 5.935 = 27.23
Round C: 148.355 / 202.345 * 3.183 / 5.935 * 49.361 / 97.22 = 19.964
Question 3
You founded a firm three years ago. You started with $ 0.263 million, which returned to you 1.968 million shares. Since then, you have sold an additional 1.466 million shares to angel investors.
You are about to raise more capital from a VC firm, which wants to invest $5.496 million in exchange of 2.175 million new shares .
What is the post-money valuation (in million)?
Answer:
What percentage of shares the VC will own?
Answer:
Answer:
Part 1
Final Number of shares: 5.609
Price per share (last round): 2.527
Post-money valuation (in million): 5.609 * 2.527 = 14.173
Part 2
- 2.175 / 5.609 = 38.777 %