Assume the followingas founder of nec you initially own 100, Ask an Expert

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Assume the following:

As Founder of NEC, you initially own 100% of the 4.0 million shares of commons stock issued by the company.

A VC offers to invest $12.0 million in your company at a premoney valuation of $20.0 million.

Assume that the VC and you (the Founder) agree to set aside 20% of the company for the employee option pool.

1. What percentage of the company will you own after this financing is completed? 2. How many shares will be outstanding (of course, include preferred shares as if they were converted into common stock) after the financing? 3. How many shares will the VC own after this financing?

Forat 12.34% as 12.34. and format 1.234 million shares as 1.234

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92714545

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