You Founded Your Own Firm Three Years Ago

question 88

Multiple Choice

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 2 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 $5 million and would receive 4 million newly issued shares in return. After the venture capitalist's investment, the post-money valuation of your shares is closest to ________.

• A) $2.5 million
• B) $6.3 million
• C) $2.0 million
• D) $1.3 million

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Definitions:

Group Sales Presentation

A sales pitch or demonstration presented to multiple decision-makers or potential buyers at once.

Credibility

The quality of being trusted and believed in, often achieved through consistency, reliability, and accuracy in actions and statements.

Technical Jargon

Specialized language used by professionals in a particular field that may be difficult for outsiders to understand.

Buzzwords

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