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 $5 million and would receive 4 million newly issued shares in return. Suppose you sold the 2 million shares to the angel investor for $500,000. What was your percentage ownership in the company immediately following the angel investor's investment?

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C) Total shares outstanding = 3 million + 2 million = 5 million. Your share is 11ea84dc_f51e_0c8d_9a63_61fd5bce6a09_TB1316_00_TB1316_00

You Founded Your Own Firm Three Years Ago