David found a company and goes through the investment rounds shown below: Round Source Price Number of Shares
Series A Self $0.50 325,000
Series B Angel $1.00 475,000
Series C Venture Capital $1.50 200,000
Series D Venture Capital $2.25 350,000
He decides to take the company public through an IPO, issuing 2 million new shares. Assuming that he successfully completes the IPO, the net income for the next year is estimated to be $8 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 14. What share of the company will David own after the IPO?

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The Answer of David found a company and goes through the investment rounds shown below: Round Source Price Number of Shares
Series A Self $0.50 325,000
Series B Angel $1.00 475,000
Series C Venture Capital $1.50 200,000
Series D Venture Capital $2.25 350,000
He decides to take the company public through an IPO, issuing 2 million new shares. Assuming that he successfully completes the IPO, the net income for the next year is estimated to be $8 million. His banker informs him that the price of shares should be set using average price-earnings ratios for similar businesses, which is 14. What share of the company will David own after the IPO?

David Found a Company and Goes Through the Investment Rounds