Rogue Space is a startup technology company that specializes in fixing satellites while they are in orbit around the Earth. The company has been raising funds from friends, family, private investors, and corporate partners in order to fund their first space launch of equipment. The company is looking at several methods for raising finance private financing through an angel or venture capitalist, issuing debt through bonds, as well as potentially going public with an initial public offering. As the newly hired CFO, you have been asked to investigate the options and calculating out the different scenarios for both equity and debt.
You decide to address the potential of equity financing first. You know that from equity financing from the company founders, as well as Series A funding from friends and family, the company has million in outstanding shares. Using an angel investor or venture capitalist will require Rogue to issue additional stocks. To attract investors, you decide to offer equity in the company to an investor for $ million.
What will be the number of shares that you must issue in order to provide an angelVC with equity in the company?
What is the implied price per share with this additional issuance of equity?
What will the value of the whole company be after an investor accepts your offer?
Total Shares outstanding:
Number of Shares to be issued:
Implied price per share with issuance of equity:
Value of Company after investor:
