Question: You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return. The post-money valuation of your firm is: Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own? You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return. The post-money valuation of your firm is: Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
