Question
You have started your own company (Men's Wear Ltd) with an initial investment of $300,000. As a result of your investment, you obtained 800,000 shares.
You have started your own company (Men's Wear Ltd) with an initial investment of $300,000. As a result of your investment, you obtained 800,000 shares. As time went by, you have sold 800,000 shares to an investor for an amount of $4,000,000. One day, a private investor (VC) approaches you and offers to invest $1,000,000 in Men's Wear Ltd including a post-money valuation of $1,500,000. If you accepted the investment offer from the private investor, what percentage of the company will you now own? what is the value of your shares as a result of the investment?
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