An investor offers you $759,282 in exchange for shares of your start-up company. The investor demands an annual rate of return of 69%, and expect that your IPO will be in 4 years. At that time you expect your firm to have annual income of around $1,839,723 dollars. A similar firm was recently acquired for $18,127,989 dollars. At the time of acquisition, their income was $1,978,426 million dollars per year.

What percentage of your equity should you give to the investor?

Enter your answer as a percentage, without decimals. For example, if your answer is 0.76543, that's 76.543%, which rounds to 77%.

Answer rating: 100% (QA)

To calculate the percentage of equity you should give to the investor we can use the valuation based ... View the full answer