XYZ Company is an electronic gaming company, the company founders, believe that their unique gaming system will allow them to achieve a subsequent (Year 3) $100 million venture value with a one-time initial $2 million in venture financing. Similar firms in the marketplace are currently seeking multistage financing amounting to $10 million to achieve comparable results. The founders have organised with one million shares and are willing to grant venture investors a 100% annual return on their business plan projections.

A. What percentage of ownership must be sold to grant the 100% annual return for the three years of investment? Show all working.