Question
You founded your own firm three years ago. You initially contributed $75,000 of your own money and issued yourself 2 million shares of stock. Since
You founded your own firm three years ago. You initially contributed $75,000 of your own money and issued yourself 2 million shares of stock. Since then, you have sold an additional 300,000 shares of stock to angel investors. The firm has no debt. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $1.5 million and would receive 1 million newly issued shares in return.
A. The VC will own what percentage of the firm after investment?
B. The post-money valuation of your firm is:
C. The pre-money valuation of your firm is:
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