An angel investor participates in a seed round, contributing $50,000 for a 10% stake in a clean-tech startup. Later, in a Series A, the company issues new shares that dilute her ownership to 7%. If the post-Series A valuation is $3.5 million, how much is her stake worth now, and what is her financial gain?

Mon, 04 May 2026 09:57:22 +0000

**Why Early Investments in Clean Tech Matter—And What Real Returns Actually Look Like** In an era where climate innovation drives global momentum, U.S. angel investors are increasingly stepping into early-stage clean-tech ventures. Many deploy $50,000 during seed rounds to support breakthroughs in sustainable energy, carbon reduction, and green infrastructure—often holding for a meaningful stake, though frequently diluted through later funding rounds. One key scenario: an angel investor contributes $50,000 for 10% ownership during a seed round, later seeing their stake shrink to 7% amid a Series A that issues new shares. If the company now values its venture at $3.5 million, what does that mean for their investment—and how much is the real financial upside? Understanding the Book Value of Your Stake At the heart of this dynamic is basic equity math. With a 7% ownership stake in a company now valued at $3.5 million, the investor’s stake is worth:
7% × $3,500,000 = $245,000