You Founded Your Own Firm Three Years Ago

question 93

Multiple Choice

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 2 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. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?

• A) 36%
• B) 29%
• C) 17%
• D) 21%

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Definitions:

Gay Orientation

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same sex.

Adult Men

Adult males, typically referring to human males over the age of maturity, often 18 years or older.

American Public

The general population or societal collective of people living in the United States, often referred to in discussions involving public opinion or social trends.

Predominantly Gay

A sexual orientation description for individuals who are primarily attracted to persons of the same sex, though they may occasionally experience attraction to the opposite sex.