Apex Venture Partners, a VC firm, is planning to invest $7 million today in a startup...
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Apex Venture Partners, a VC firm, is planning to invest $7 million today in a startup entrepreneurial firm, Russel Holdings. The VC expects the firm to have an exit (IPO) valuation of $300 million in four years and has a discount rate of 30%. The number of shares currently outstanding in Russel is 3 million shares. Calculate the post and pre-money valuations, the stock ownership required by the VC, the price per share, and the number of shares the VC will get based on this valuation. Apex Venture Partners, a VC firm, is planning to invest $7 million today in a startup entrepreneurial firm, Russel Holdings. The VC expects the firm to have an exit (IPO) valuation of $300 million in four years and has a discount rate of 30%. The number of shares currently outstanding in Russel is 3 million shares. Calculate the post and pre-money valuations, the stock ownership required by the VC, the price per share, and the number of shares the VC will get based on this valuation.
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Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
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