Comment on The IPO Markets - Part 1

rishikesh commented on 21 Sep 2017, 02:50 PM

the Venture capatalist here is paying 7 crores for 14 % equity i.e. company is valued at 50 crores. But the total cash and shares company had was worth only 5 crores. Then how is it valued directly to 50 crores? Does this means that company expanded on its own to 50 crores ? 50 minus 7 equals 43. So does this means that the company just before venture capatalist investment was worth 43 crores?
How is the company’s worth decided ?

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