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But total return (gross) is $318,750
#### 318750
A venture fund invests $2 million in a startup. The company eventually exits at $40 million. If the fund owned 15% at exit, how much profit did they make?
Fund’s ownership: 15%
Exit value: $40,000,000
Fund’s share: 15% × $40,000,000 = $6,000,000
Initial investment: $2,000,000
Profit: $6,000,000 – $2,000,000 = $4,000,000
#### 4000000
An angel investor puts $250,000 into a startup at a $1 million pre-money valuation. What percentage equity does she receive?
