Question
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 million shares of
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you 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.
Part 1. The post-money valuation of your firm is?
Part 2. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?
Part 3. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will you own?
Part 4. Assuming that this is the venture capitalist's first investment in your firm, the post-money valuation of your shares is?
Part 5. Assuming that this is the venture capitalist's first investment in your firm, the post-money valuation of the angel investor's shares is?
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