Melanie founded her company using $250,000 of her own money,issuing herself 100,000 shares of stock.An angel investor bought an additional 50,000 shares for $350,000.She now sells another 190,000 shares to a venture capitalist for $750,000.What percentage of the firm does Melanie now own?

Question

Quizplus · Accepted Answer

Melanie initially owned 100,000 shares. After the angel investor and venture capitalist investments, the total number of shares is 100,000 + 50,000 + 190,000 = 340,000. Melanie's ownership percentage is (100,000 / 340,000) * 100% = 29.41%, which rounds to 29%.

Melanie Founded Her Company Using $250,000 of Her Own Money,issuing