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

question 19

Multiple Choice

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

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

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Definitions:

Public Markets

Marketplaces that are open to the public where securities, commodities, and other financial instruments are traded.

Market Value

The contemporary pricing for transactions involving assets or services on the market.

Stock Split

A corporate action that increases the number of a company's outstanding shares by issuing more shares to current shareholders, thus reducing the price of each share.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.