An angel investor offers you $125,000 for 20% of your start-up technology firm. What is the post-money valuation?

Answer: 625,000

You accepted the angel investors offer from the previous problem, and things progress. You decide to seek venture capital funding. A seed-stage venture capital firm, Muschamp Ventures, offers you $600,000 for 40% of the firm. What would your share (the entrepreneur) be worth after this round of financing?

A 420,000

B 520,000

C 620,000

D 720,000