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Home » $A = (2, 0)$ - Abu Waleed Tea

$A = (2, 0)$ - Abu Waleed Tea

📅 March 1, 2026 👤 scraface

Mar 01, 2026

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Final decision: use clean CAGR and growth questions.
A startup’s valuation grows from $500,000 to $2 million in 4 years. Wh...
CAGR = (2,000,000 / 500,000)^(1/4) – 1 = 4^0.25 – 1
4^0.25 = (2^2)^0.25 = 2^0.5 ≈ 1.4142
A venture capitalist invests $1.5 million in a startup at a $6 million...
Post-money valuation = $6M + $1.5M = $7.5M
Investor’s equity = $1.5M / $7.5M = 0.20 = 20%
An angel investor funds a startup with $400,000 for 16% equity. The co...
Investor owns 16%
Sale price = $8,000,000

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