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📅 March 13, 2026 👤 scraface

Mar 13, 2026

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📌 An angel investor provides $250,000 in seed funding to a tech startup, receiving 15% equity in return. Two years later, the company raises a new round of funding at a valuation 4 times higher than the original investment valuation. If the investor does not participate, what is the current dollar value of their equity stake?

📌 The original valuation was $250,000 / 0.15 = $<<250000/0.15=1666666.67>>1,666,666.67.

📌 The new valuation is 4 × $1,666,666.67 = $<<4*1666666.67=6666666.68>>6,666,666.68.

📌 The investor’s 15% stake is now worth 0.15 × $6,666,666.68 = $<<0.15*6666666.68=1000000.00>>1,000,000.00.

📌 #### 1000000

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