Calculate post and pre-money valuations

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A VC is planning to invest $ 3 million today in a startup firm. The VC expects the firm to have an exit valuation of $25 million in four years and has a discount rate of 50%. Existing share pool (for both the founders and for any new management stock options) has 1 million shares. Calculate post and pre-money valuations, the stock ownership required by the VC, the price per share, and the number of shares the VC will get based on its valuation.

Reference no: EM131566331

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