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

Chapter11: Venture Capital Valuation Methods

Section: Chapter Questions

Problem 17DQ

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Question

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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Step 2: Calculate Initial And Counteroffer Ownership Percentage:

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Step 3: Determine Difference in Ownership Percentage

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