1. Is it feasible for Americana to raise $20 million from venture funds in one round today, keeping at least 50% ownership till the exit? What is the maximum amount Americana can raise today to maintain exactly 50% ownership? 1. No, it is not feasible for Americana to raise $20 million from venture funds in one round today and keep at least 50% ownership at the time of exit. The maximum amount Americana can raise today to maintain exactly 50% ownership at the time of exit is $16 million. 2. Suppose Americana decides to raise money in two rounds. Americana plans to raise $7 million from venture funds four years from now. What is the maximum amount of money Americana can raise from venture funds now while keeping 50% ownership at the time of exit? 2. If Americana plans to raise $7 million from venture funds four years from now, the maximum amount they can raise now and still maintain 50% ownership at the time of exit is $14 million.

Question

1. Is it feasible for Americana to raise $20 million from venture funds in one round today, keeping at least 50% ownership till the exit? What is the maximum amount Americana can raise today to maintain exactly 50% ownership? 1. No, it is not feasible for Americana to raise $20 million from venture funds in one round today and keep at least 50% ownership at the time of exit. The maximum amount Americana can raise today to maintain exactly 50% ownership at the time of exit is $16 million.  2. Suppose Americana decides to raise money in two rounds. Americana plans to raise $7 million from venture funds four years from now. What is the maximum amount of money Americana can raise from venture funds now while keeping 50% ownership at the time of exit? 2. If Americana plans to raise $7 million from venture funds four years from now, the maximum amount they can raise now and still maintain 50% ownership at the time of exit is $14 million.

Keeley · Answer

1. Feasibility of Raising $20 Million in One Round Today To determine the feasibility of raising $20 million from venture funds in one round today while keeping at least 50% ownership at the time of exit, we need to calculate the post-money valuation of the company after the investment. The post-money valuation is the value of the company after the investment is made.  Let's assume the amount raised is $20 million. To maintain 50% ownership, the post-money valuation should be $40 million ($20 million raised + $20 million ownership retained). However, the founders expect to sell the company for $200 million in nine years. Therefore, the maximum amount Americana can raise today while keeping exactly 50% ownership at the time of exit is $16 million ($200 million / 2^(9/9) = $16 million).  2. Fundraising in Two Rounds If Americana plans to raise $7 million from venture funds four years from now, we can calculate the maximum amount they can raise now while maintaining 50% ownership at the time of exit.  The founders currently have 4 million shares and want to keep 50% ownership at the time of exit. This means they should have 4 million shares out of the total shares outstanding at the time of exit. Let's assume the total shares outstanding at the time of exit is represented by T. Since Americana plans to raise $7 million four years from now, we can use the future value of a lump sum formula to calculate the total shares outstanding:  $7 million = T / 2^(4/9) Solving for T, we find T = $14 million. Therefore, the maximum amount Americana can raise from venture funds now while still maintaining 50% ownership at the time of exit is $14 million.  Learn more about venture funds: Click here for more information on venture funds

Determining Feasibility of Venture Fundraising for Americana

1. Is it feasible for Americana to raise $20 million from venture funds in one round today, keeping at least 50% ownership till the exit? What is the maximum amount Americana can raise today to maintain exactly 50% ownership?

2. Suppose Americana decides to raise money in two rounds. Americana plans to raise $7 million from venture funds four years from now. What is the maximum amount of money Americana can raise from venture funds now while keeping 50% ownership at the time of exit?

1. Feasibility of Raising $20 Million in One Round Today

2. Fundraising in Two Rounds

Learn more about venture funds:

More Posts: