Simone founded her company using $150,000 of her own money,issuing herself 300,000 shares of stock.An angel investor bought an additional 200,000 shares for $100,000.She now sells another 500,000 shares of stock to a venture capitalist for $2 million.What is the post-money valuation of the company?

Question

Quizplus · Accepted Answer

The pre-money valuation of the company can be calculated by adding the founder's investment and the angel investor's investment:
Pre-money valuation = $150,000 + $100,000 = $250,000

The post-money valuation can be calculated by adding the pre-money valuation to the venture capitalist's investment:
Post-money valuation = Pre-money valuation + Venture capitalist's investment
Post-money valuation = $250,000 + $2,000,000 = $2,250,000

Therefore, the correct answer is B) $2,250,000.

Simone Founded Her Company Using $150,000 of Her Own Money,issuing