As the CEO of a technology start-up venture, you are pitching your software company's seed round to a potential investor, who is a partner at a $450MM AUM (assets under management) VC fund. According to your sales team, you have 208 users this year (assume year 1) with each paying $149.99/mo. for your software-as-a-service (SaaS) product.

Recently, your CFO says your annual expenses are around $275k annually and projected to rise 12.75% each year (year on year increase). Good news is, your sales (units of annual software licenses) will grow by 20% in year 2, and 30% on year 3 and by 45% in year 4 (year on year throughout). More importantly, in year 3 and 4, you are improving the product and can charge customers $299.99 per month.

Assuming 4-year projection time-horizon, what is:

• Your gross burn (in $) for each of the 4 years 
• Your profit margin (in $ and %) for each of the 4 years 
• Assuming your industry average P/E ratio or multiplier, what is your terminal value ($) for year 4 as an exit valuation?        
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Appendix ARR multiplier Market cap Medical equipment 21.5 22B Defense 14.6 14B Retail 10.44 24B Software Energy 11.75 55B 18.72 13B Appendix ARR multiplier Market cap Medical equipment 21.5 22B Defense 14.6 14B Retail 10.44 24B Software Energy 11.75 55B 18.72 13B