Question

An entrepreneur seeks $4 million from a venture capitalist. They agree that the entrepreneur’s venture is currently worth $12 million and that, when the company goes public in an IPO three years hence, it will have an expected market capitalization of $70 million. Given the company’s stage of development, the VC requires a 40% return on investment. What fraction of the firm will the VC receive in exchange for its $4 million investment?


$1.99
Sales0
Views87
Comments0
  • CreatedMarch 26, 2015
  • Files Included
Post your question
5000