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:

Joint Goal

A shared objective or aim that is pursued by two or more parties in collaboration or partnership.

Diversification Benefits

The reductions in risk achieved by spreading investments across various assets, sectors, or markets to minimize the impact of any single investment's performance.

Revenue Enhancement

Strategies or activities aimed at increasing the total revenue of a company, often through marketing, pricing adjustments, and expansion into new markets.

Cost Reductions

Measures implemented by a company to decrease its expenses and improve profitability.