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You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return received 2 million shares of stock.
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return received 2 million shares of stock. Since then, you have sold an additional 1 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return. a. Calculate the post-money valuation of your firm. (5 marks) b. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own? (3 mark) c. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own? (2 mark)
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