In its first round of venture funding, SlickBrud received $2…
In its first round of venture funding, SlickBrud received $2 million from a single venture capital firm, DreamVorks, to which it allocated 20 million shares. In a subsequent round, SlickBrud raised $8 million by releasing another 20 million shares to a new venture capital firm. As a result, the equity share of DreamVorks dropped to 20%. Which of the following statements is correct? (Pick one).
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