Question: • You founded your own firm three years ago. You initially contributed $500,000 of your money and, in return received 500,000 shares of stock.
• Since then, you have sold an additional 50,000 shares to angel investors.
• You are now considering raising even more capital from a venture capitalist (VC). This VC would invest $15 million and would receive 1,000,000 newly issued shares.
• What is the post-money valuation (the value at the founding round price)? Assuming that this is the VC's first investment in your company, what percentage of the firm will he end up owning? What percentage will you own? What is the value of your shares?