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By giving away more than 50% of the equity. pre-money valuation: $150M investment : $169.5M post-money valuation: $319.5M So the investors got about 53% of
by andruby 9y ago
By giving away more than 50% of the equity.
pre-money valuation: $150M
investment : $169.5M
post-money valuation: $319.5M
So the investors got about 53% of the company for $169.5M.
- cbcoutinho 9y agoSo essentially the company doubled in value - the investers thought it was undervalued and were willing to pay the difference
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- tomhoward 9y agoNo - the investors were willing to add $169.5M of value to the company by giving it $169.5M in cash. The company is "worth" the same as it was before, plus $169.5M new cash in the bank. In return, the investors received newly-issued shares at a price based in the pre-investment valuation of the company. So there's no paying any "difference"; only increasing the valuation of the company by injecting new cash into it and creating new shares.