An Entrepreneur Founded His Company Using $200,000 of His Own

question 26

Multiple Choice

An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares. An angel investor bought an additional 100,000 shares for $200,000. The entrepreneur now sells another 400,000 shares to a venture capitalist for $1 million. What is the post-money valuation of the company?

• A) $1,140,000
• B) $1,000,000
• C) $1,750,000
• D) $2,000,000