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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
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. Suppose you had sold the 1 million shares to the angel investor for $500,000. What would have been your percentage ownership in the company immediately following the angel investor's investment? O A. 100% B. 50% C. 33.3% D. 28.6% E. 66.7%
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