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No. What someone is willing to pay and what something intrinsically is worth is not the same thing. If the stated presumption is that the company was worth $400
by adamlett 9y ago
No. What someone is willing to pay and what something intrinsically is worth is not the same thing. If the stated presumption is that the company was worth $400M before the $100M cash infusion, then it follows that it must be worth $500M after that.
- sokoloff 9y agoYes, but the original problem statement was flawed (over constrained and confictingly constrained). It was "pre-money $400M", "new investment $100M", "new investment gets 25%". Those can't all be held true. You can change exactly one of them to remove the conflict, so it's either "pre money $300M", "new investment $133.33M", or "new investment gets 20%"