Assume that Bob is considering an $8 million Series A investment in YelloBox in exchange of 5 million common shares. Following the Series A investment, YellowBox will have 20 million common shares outstanding. Bob estimates the value of his stake in the company to be $12,860,000 at the time of the Series A investment. He also expects the retention percentage to be 60% and an exit valuation of $300 million. What is Bob's required multiple of money to come up with $12,860,000 partial valuation, by using the VC method

 

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To calculate Bobs required multiple of money using the VC method we need to determine the postmoney ... View the full answer