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You founded your own firm three years ago. You initially contributed $100,000 of your own money and in return you received 1 million shares of
You founded your own firm three years ago. You initially contributed $100,000 of your own money and in return you received 1 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 reccive 2 million newly issued shares in return. After the venture capitalist's investment, (a) what is the post-money valuation of your shares? (b) what percentage of the firm does the VC own? (c) what percentage of the firm does the angel investor own? 4
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