You founded your own firm two years ago. Initially you contributed $100,000 of your own money and, in return, received 1.5 million shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. Now you are considering raising even more capital from a venture capitalist (VC). This VC would invest $6 million and would receive 3 million newly issued shares. What is the post-money valuation?

Assuming that this is the VC’s first investment in your company, what percentage of the firm will she end up owning? What percentage will you own? What is the value of your shares?