If a startup is raising a $3M Series A and asking for a $10M pre - money valuation, but the VCS counteroffer with a $7M pre, what is the difference in ownership percentage for the VCs? Group of answer choices 23% 7% 33% 25% 10%

If a startup is raising a $3M Series A and asking for a $10M pre - money valuation, but the VCS counteroffer with a $7M pre, what is the difference in ownership percentage for the VCs? Group of answer choices 23% 7% 33% 25% 10%

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 10EP

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If a startup is raising a $3M Series A and asking for a $10M pre- money valuation, but the VCS
counteroffer with a $7M pre, what is the difference in ownership percentage for the VCs?
Group of answer choices 23% 7% 33% 25% 10%

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