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Turn Heads Every Day: The Bold Headbands That’ll Go Viral Online! - Upplift

📅 February 28, 2026 👤 scraface

Feb 28, 2026

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📌 A startup increases its value from $500,000 to $2 million in 4 years. What is the compound annual growth rate (CAGR)?

📌 CAGR = (Final / Initial)^(1/t) – 1

📌 = (2,000,000 / 500,000)^(1/4) – 1 = 4^(0.25) – 1

📌 4^(0.25) = √(√4) = √2 ≈ 1.4142

📌 CAGR ≈ 1.4142 – 1 = 0.4142 → 41.42%

📌 #### 41.42

📌 An investor buys 10,000 shares at $3 each in a startup. The company later raises capital at a $10 million pre-money valuation, issuing new shares at $2 per share. How many new shares does the investor receive?

📌 Post-money valuation = $10M + previous value → but use pro-rata

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