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📅 February 27, 2026 👤 scraface

Feb 27, 2026

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🔥 Popular Posts

Better: Fractional ownership = $400,000 / ($5,000,000 × 0.80) = $400,0...
Alternatively: investor gets $400K / $5M = 8% at full pricing → 8% × 0...
But correct method:
Pro-rata share without discount: $400K / $5M = 8%
With 20% discount, investor pays 80% of next round’s price per share,...
Final equity: 10%
Investment = $400,000
Pre-money valuation = $5M → post-money = $5.4M
Equity = $400,000 / $5,400,000 = 0.07407… ≈ 7.41%
But correct compound logic:

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