News for hackers. Stuff that matters.
Re:Dilution by sja on Wednesday March 01, 2017 @06:31PM (#13769726)
Worth of company before investor gives company cash (pre-money valuation): $10 million

Worth of company after adding $5 million from investor: $15 million.

Investor now owns $5 million dollars "worth" of a now $15 million company

$5 / $15 = ~33%

There are no comments on this comment yet.