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5John invests $250,000 in a biotech startup for a 15% equity stake. After two years, the company raises a new round of funding, diluting his shares by 20%. If the company is now valued at $4.2 million, what is the current value of Johns remaining equity?
His ownership is diluted by 20%, meaning he retains 100% - 20% = 80% of his original 15%.
The company is now valued at $4.2 million.