Question
You founded your own firm three years ago. You initially contributed $84,180 of your own money and in return you received 1,806,519 million shares of
You founded your own firm three years ago. You initially contributed $84,180 of your own money and in return you received 1,806,519 million shares of stock. Since then, you have sold an additional 1,827,122 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $5,385,812 million and would receive 2,695,188 million newly issued shares in return.
Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?
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