Assuming That This Is the Venture Capitalist's First Investment in Your

question 3

Multiple Choice

Assuming that this is the venture capitalist's first investment in your firm,the post-money valuation of the angel investor's shares are closest to:

• A)$12.5 million
• B)$4.0 million
• C)$5.0 million
• D)$2.5 million

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Definitions:

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.

No Further Deposits

A situation or condition where no additional deposits or contributions are allowed.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.