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You are an entrepreneur; and you have just raised $500,000 for your new venture in an angel round of financing. In this financing round, your

You are an entrepreneur; and you have just raised $500,000 for your new venture in an angel round of financing. In this financing round, your investors agreed to invest the money in your venture in exchange for a 20% equity interest. What is the post- and pre-money valuation of your venture that the round implied? Show your calculations and results.

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