First round: 10% of the company was sold for £50,000. total valuation: £500,000
Second round: an additional 5% of the company is being sold for £100,000. new valuation: £2,000,000.
so shares purchased in the first round are now worth about 4x more than when you bought them.
simply put,
First round: 10% of the company was sold for £50,000. total valuation: £500,000
Second round: an additional 5% of the company is being sold for £100,000. new valuation: £2,000,000.
so shares purchased in the first round are now worth about 4x more than when you bought them.