Its simple. In this particular example you just equate according to final ownership after dilution. In this example existing shares should be equal to the 90% of the shares post dilution. Hence 90% of Final = 100 shares Hence 100% of the final = 111.1 shares You just round down to 111 and add the difference of 11 to existing shares.
What? I had given the most right answer, you guys didn't commented back. Through my method, new investor would get exactly 10% share. Go check that out.
Saw that. Great method- but selling shares is a true mess. It would likely cost hundreds/thousands of dollars in legal fees to get it done. Clever solution, but it's unlikely a company would use that method.
Oh! Thanks i didn't knew that, selling share was tough. So in this case company should issue 111,120 new shares. From these give 4 each to old founder and remaining 111,112 to new investor. So net share would be: F1 -5,000,004 = 45% F2- 5,000,004 = 45% Inv- 111,112 =10% Total - 1,111,120 =100% Through this new investor would get exact 10% For $100,000. PS: Thanks for insight. And i think that yet nobody have given the above answer so still i am winner.
Can u make a full video
Here: czcams.com/video/wQ9KHm9A0R4/video.html
Let the *D I L U T I O N* commence!!
Awesome. Now I'm ready for Shark Tank.
best of luck
Gotta be careful when your VC is from the Salamanca family
This was good information. You should do some videos on it more often.
Awesome! Appreciate the explanation!
Cool stuff! Thanks for explaining it!
THÉ BEST!!!! Can you please cover dilution ?
I do not agree with your hairstyle choice, but you are very smart and intelligent
ty very much best explanation
What happens when the new investor signs a contract that guarantees an exact % of equity rather than shares
Why not just buy the existing shares instead of issuing new shares and running into decimal problems?!
Probably for tax purposes
If an investor buy it the money goes to the shareholder but if they buy from thee company it goes to be invested in company
Nice!
Thanks
Wait, I'm confused. If the guy bought 10% wouldn't the total amount of shares become 110, not 111?
Ownership interest is not calculated using the percentage but they use number of shares to determine the agreed percentage.
@Slidebean pls I'd love to know how you came about the 11 new shares being issued. Is there a parameter to determining this
Its simple. In this particular example you just equate according to final ownership after dilution.
In this example existing shares should be equal to the 90% of the shares post dilution. Hence
90% of Final = 100 shares
Hence 100% of the final = 111.1 shares
You just round down to 111 and add the difference of 11 to existing shares.
is it just me or this video have no audio?
Yeah but… Lalo died.
Hi, genuine feedback but the idea you’re trying to present isn’t coming through in this short. Unfortunately you’re talking too quickly
Check my comment on the previous post....
Slow bro I am from india and yt shorts don't have speed control 😞😅... thoda slow..
LALO
first comment
What?
I had given the most right answer, you guys didn't commented back.
Through my method, new investor would get exactly 10% share.
Go check that out.
Saw that. Great method- but selling shares is a true mess.
It would likely cost hundreds/thousands of dollars in legal fees to get it done.
Clever solution, but it's unlikely a company would use that method.
Oh! Thanks i didn't knew that, selling share was tough.
So in this case company should issue
111,120 new shares.
From these give 4 each to old founder and remaining 111,112 to new investor.
So net share would be:
F1 -5,000,004 = 45%
F2- 5,000,004 = 45%
Inv- 111,112 =10%
Total - 1,111,120 =100%
Through this new investor would get exact 10% For $100,000.
PS: Thanks for insight.
And i think that yet nobody have given the above answer so still i am winner.