You Founded Your Own Firm Three Years Ago

question 103

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 $4 million and would receive 2 million newly issued shares in return. The post-money valuation of your firm is closest to ________.

• A) $10.0 million
• B) $4.0 million
• C) $9.0 million
• D) $3.5 million

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision independently, often associated with freedom from external control or influence.

Make Decisions

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Implement Decisions

The act of putting into action or executing the resolutions or choices made.

Historical Time Period

A distinct phase in history, characterized by unique events, cultures, and societal norms.