Question

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 3 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $6 million and would receive 3million newly issued shares in return. After the venture capitalist's investment, what percentage of the firm will you own

Answer 1

28.57

Step-by-step explanation:

Its right on the quiz

Answer 2

33.33%

Step-by-step explanation:

Own shares = $3,000,000

Angel shares = $3,000,000

Shares issued to venture capital = $3,000,000

Total shares = $9,000,000

% of the firm i will own = Own shares/Total shares

% of the firm i will own = $3,000,000/$9,000,000

% of the firm i will own = 0.333333333

% of the firm i will own = 33.33%