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A founder owns 100% of their startup. They are offered an equity investment by a VC...

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Finance

A founder owns 100% of their startup. They are offered an equityinvestment by a VC investor, accepts, and eventually, undergoes onemore round of financing, with a new VC investor. The financingevents are as follows: VC investor 1 steps in with $0.5 million ata pre-money value of $2 million; later, VC investor 2 contributes$3 million at a pre-money of $7 million; After the second round ofinvestment, what is the worth in stock of the founder, of VC1, andof VC2? What percentage of the company does each own?

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