Suppose you had sold the 1 million shares to the angel investor for $500,000.What would have been the post-money valuation of your shares immediately following the angel investor's investment?

Question

Quizplus · Accepted Answer

The post-money valuation is calculated by adding the investment amount to the pre-money valuation. Here, the pre-money valuation is $0 (since the company had no prior valuation), and the investment amount is $500,000. Therefore, the post-money valuation is $500,000 + $500,000 = $1.0 million.

Suppose You Had Sold the 1 Million Shares to the Angel