How would you answer this question:
You are an investor, and own 20% of a start-up that is raising $20 million at a $100 million post-money valuation (identical security). We are not participating. What is the ownership after the round, and what is your ownership worth?
| +34 | Getting the VP Promote at the "Wrong" Firm | 11 | 1d |
| +21 | How to rank growth equity shops | 2 | 17h |
| +18 | Growth Equity Compensation | 2 | 2w |
| +14 | Biotech VC path from Patent Law | 3 | 6d |
| +3 | Hedosophia US | 3 | 2d |
| +3 | Insight Partners WLB and deal flow in 2026 | 3 | 1w |
| +2 | Classic Turnaround VC cases? | 3 | 1w |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
The new investor owns 20% on a post-money basis ($20M / $100M). All existing owners now only account for 80% of ownership, so everyone is diluted 20%. 80% of 20% is 16%, which is your new ownership %. That is worth $16M (16% of the $100M post-money).
Et magni rerum debitis esse fugit cupiditate vel est. Animi blanditiis blanditiis enim blanditiis necessitatibus dolorum sequi. In labore eum magnam cumque nam sit. Cum et vero voluptas perferendis.
Illo deleniti ut est. Reiciendis nulla illum dolorem odio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...