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Question 6 (10 points). You founded your own firm two years ago. You initially contributed $50,000 of your money and in return received 1,000,000 shares
Question 6 (10 points). You founded your own firm two years ago. You initially contributed $50,000 of your money and in return received 1,000,000 shares of stock. Since then, you have sold an additional 750,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. Assume the venture capitalist would invest $2 million and would receive 2,000,000 newly issued shares. a)Assuming that this is the venture capitalist' s first investment in your company, what percentage of the firm will he end up owning? b)What percentage will you own? What is the value of your shares
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