Let's assume You are in charge of a $20 Million venture fund with a 10 yr life. To achieve 25% annual return, what multiple of original investment must the fund pay, excluding fees? Develop a model.

Assuming the firm makes 10 investments and "law of returns "holds, how much do the investments need to return, again excluding fees? Is it possible? Is it realistic?

What is the required return multiple for the successful investments?

What is the return value per successful investment?

 

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VC Fund Year Initial Capital 0 $20,000,000 1 2 3 4 5 6 7 8 9 10 VC Fund Year Initial Capital 0 $20,000,000 1 2 3 4 5 6 7 8 9 10

Answer rating: 100% (QA)

To achieve a 25 annual return the fund needs to pay a multiple of 190x over the 10year life of the f... View the full answer