An entrepreneur first started his business with $100,000.Later,a venture capitalist (VC) agrees to invest $300,000 to sustain the growth.In return,this VC will take up a 50% equity position in the firm.How much is this business worth now?
A)$400,000
B)$600,000
C)$700,000
D)$800,000

Question

Quizplus · Accepted Answer

If a VC invests $300,000 for a 50% equity stake, it implies the total value of the business is double that investment, making it $600,000.

An Entrepreneur First Started His Business with $100,000