You own a business; we both agree it’s worth X. I decide to invest $1M into the business, and then own 25% of it. What is X?
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$4m. Just imagine that it was a 4 person equal partnership and I bought one of the people out.
It depends whether the money goes into the bank account of the business, or a shareholder. "Invest" usually implies the former. In that case, after the transaction, the company is worth X + $1m, because it's a company that was worth X and now has another $1m in the bank.
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X if its a convertible note/SAFE though.
Thanks. Twitter will use this to make your timeline better. UndoUndo
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It is interesting that “invest” implies money going to the company at early stages but public markets “investors” are rarely buying from the company
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"Into" was doing a lot of work in the OP. Chose your preposition wisely!
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