You Founded Your Own Firm Three Years Ago

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 $4 million and would receive 2 million newly issued shares in return. The post-money valuation of your firm is closest to ________.

A) $10.0 million
B) $4.0 million
C) $9.0 million
D) $3.5 million

Correct Answer:

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