5A venture capitalist invested $400,000 in a clean tech startup and received a 20% return on investment after one year. If she reinvests the total amount into another startup offering a 25% return, what will be her total return after the second year?

Sun, 03 May 2026 17:15:16 +0000

5A Venture Capitalist’s $400,000 Investment in Clean Tech: $400K Returns $480K, Then a 25% Return in Year Two – Here’s What Happens In a compelling example of smart venture capital investing, 5A Venture Capital made a strategic $400,000 investment in a promising clean tech startup. Within just 12 months, her investment delivered a strong 20% return, demonstrating both market potential and the power of sustainability-driven innovation. This success journey doesn’t stop at Year One — reinvesting the full return into a high-impact second opportunity amplifies growth potential. Let’s break down the numbers: Year 1: The Initial Investment Surpasses Expectations
5A committed $400,000 and achieved a 20% return after one year:
- Return amount: $400,000 × 20% = $80,000
- Total amount reinvested: $400,000 + $80,000 = $480,000