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You Founded Your Own Firm Three Years Ago

question 18

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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 3 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $6 million and would receive 3million newly issued shares in return. After the venture capitalist's investment, what percentage of the firm will you own?


Definitions:

Virus

A microscopic infectious agent that can replicate only inside the living cells of an organism, causing a variety of diseases.

STI

Sexually Transmitted Infections, infections that are transmitted through sexual contact, caused by bacteria, viruses, or parasites.

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis, often asymptomatic but treatable with antibiotics.

Gardasil

A vaccine used to protect against infections caused by certain strains of human papillomavirus (HPV), related to cervical and other cancers.

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