Question: You founded your own firm three years ago. You initially contributed $ 2 0 0 , 0 0 0 of your own money and in

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 milion 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 milion newly issued shares in return.
Assuming that this is the venture capitalist's first investment in your firm, the postmoney valuation of your shares are closest to:
$5.0 million
$12.5 million
$4.0 million
$2.5 million
You founded your own firm three years ago. You

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