Question
You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 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 3 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. After the venture capitalist's investment, the post-money valuation of the angel investor's shares is closest to ________.
A) 2.5 million
B) 12.5 million
C) 4.0 million
D) 5.0 million
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