A company needs to raise 8M in equity from a venture capital fund to finance an...

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A company needs to raise 8M in equity from a venture capital fund to finance an expansion. The company will be worth as provided below in 5 years. If the venture capitalist wants to achieve a rate of return of 40%, what is the implied pre-money valuation (in million)? Equity today 8 million Company future value in 5 years 107.565 million A company needs to raise 8M in equity from a venture capital fund to finance an expansion. The company will be worth as provided below in 5 years. If the venture capitalist wants to achieve a rate of return of 40%, what is the implied pre-money valuation (in million)? Equity today 8 million Company future value in 5 years 107.565 million

Answer rating: 100% (QA)

To calculate the implied premoney valuation we need to consider the equity investment tod... View the full answer