Vista Venture Partners is considering an investment in a start-up firm that has developed a new technology
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Vista Venture Partners is considering an investment in a start-up firm that has developed a new technology for streaming data. If the venture is successful, Vista estimates it will be able to grow the business to an exit value of $380 million in five years.
Vista has agreed to an initial investment of $12 million to fund the early-stage development. If Vista has a 45 percent required return, what ownership percentage will it demand in exchange for its investment?
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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