Multiple Choice
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 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. After the venture capitalist's investment, the post-money valuation of the angel investor's shares is closest to ________.
A) $12.5 million
B) $4.0 million
C) $5.0 million
D) $2.5 million
Correct Answer:
Verified
Correct Answer:
Verified
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