Mike’s identity platform goes viral with customer acquisition growing at 40% per month for the past 12 months. Many investors

Mike’s identity platform goes viral with customer acquisition growing at 40% per month for the past 12 months. Many investors

Question:

Mike’s identity platform goes viral with customer acquisition growing at 40% per month for the past 12 months. Many investors are interested in investing in the A round. Mike wants to raise $10,000,000 for 25% of the company. 
How much of the company would Mike own after this deal, assuming no option pool. Remember that Mike sold 20% in the seed round and he was the only investor prior to that round.

Expert Answer:

Answer rating: 100% (QA)

To calculate how much of the company Mike would own after the A round we can fir
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