You founded your own firm three years ago. You initially contributed $200,000 of your own...
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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 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 $4 million and would receive 3 million newly issued shares in return. Suppose you sold the 1 million shares to the angel investor for $500,000. What was the post-money valuation of your shares immediately following the angel investor's investment? A. $500,000 B. $1.500 million C. $3.000 million D. $3.800 million
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