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Six years ago, you founded your business by investing $50,000 and issuing yourself 100,000 shares. Two years later, an angel investor bought 100,000 newly issued
Six years ago, you founded your business by investing $50,000 and issuing yourself 100,000 shares. Two years later, an angel investor bought 100,000 newly issued shares at a price of $3.20 per share. Two years after that, another angel investor bought 50,000 newly issued shares for $4.60 per share. Today, the firm that you founded just issued another 150,000 shares and sold them to a venture capital firm for $10.00 per share. What is the Pre-Money valuation of the business with respect to the VC acquisition? a) $4.0 million b) $3.5 million c) $2.5 million d) $2.0 million
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