Rogue Space is a startup technology company that specializes in fixing satellites while they are in orbit around the Earth. The company has been raising funds from friends, family, private investors, and corporate partners in order to fund their first space launch of equipment. The company is looking at several methods for raising finance - private financing through an angel or venture capitalist, issuing debt through bonds, as well as potentially going public with an initial public offering. As the newly hired CFO, you have been asked to investigate the options and calculate different scenarios for both equity and debt. You decide to address the potential of equity financing first. You know that from equity financing from the company founders, as well as Series A funding from friends and family, the company has 10 million outstanding shares. Using an angel investor or venture capitalist will require Rogue to issue additional stocks. To attract investors, you decide to offer 15% equity in the company to an investor for $1.5 million.
Questions:
Total Shares Outstanding:
Number of Shares to be Issued:
Implied Price per Share with Issuance of Equity:
Value of Company After Investor: