CA Final · Advanced Financial Management · Startup Finance
A venture fund offers Rs 6 crore to Kavya Tech for a pre-money valuation of Rs 18 crore. After the investment, the fund's percentage holding in the company will be:
The fund will hold 25%. Post-money valuation is pre-money Rs 18 crore plus investment Rs 6 crore, which is Rs 24 crore, and the investor's stake is Rs 6 crore divided by Rs 24 crore, giving 25 percent.
- A33.33%
- B25.00%Correct
- C30.00%
- D20.00%
Explanation
Post-money = 18 + 6 = Rs 24 crore. Holding = 6/24 = 25%. The 33.33% option wrongly divides investment by pre-money (6/18).
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