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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

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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 1 million newly issued shares in return. What percentage of the firm will you own if you go ahead with issuing the shares to the venture capital firm? 25% 33% 40% 50%

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