# Part 1 (ch24) Questions Numeric

**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 **0.054 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: **2.803** & Series A Post-Money: **4.469**

Series B Pre-Money: **51.534** & Series B Post-Money: **88.187**

Series C Pre-Money: **139.14** & Series C Post-Money: **208.693**

**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: 4.469 - 2.803 = 1.666

Round B: 88.187 - 51.534 = 36.653

Round C: 208.693 - 139.14 =69.553

Round A: 2.803 / 4.469 = 62.721

Round B: 51.534 / 88.187 * 2.803 / 4.469 = 36.652

Round C: 139.14 / 208.693 * 2.803 / 4.469 * 51.534 / 88.187 = 24.437