(Answered)-An entrepreneur invested $500,000 of his own money in a - (2025 Updated Original AI-Free Solution

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

Question

An entrepreneur invested $500,000 of his own money in a ?theme? restaurant, The Mad Cow. It becomes wildly successful and he sought out a VC to assist with opening a chain of these restaurants. After the first stage of funding the VC had a 43% ownership stake in The Mad Cow. In the second stage of financing the VC contributed $32 million. The VC?s ownership stake after the second stage increased to 62%. What is the after-the-money valuation in the second stage?