Question: VC Method CALCULATIONS Deal Information Exit value $40,000,000 Time to exit 4 Discount rate 60.00% Investment amount $4,000,000 Number of existing shares 1,000,000 Post-Money X

VC Method

CALCULATIONS

Deal Information

Exit value

$40,000,000

Time to exit

4

Discount rate

60.00%

Investment amount

$4,000,000

Number of existing shares

1,000,000

Post-Money

X

X

Pre-Money

X

X

Ownership % of VC

X

X

Ownership % of founders

X

X

Number of new shares

X

X

Price per share

X

X

Final wealth of VC

X

X

Final wealth of founders

X

X

PV of VCs wealth

X

PV of founders wealth

X

X

VC Method

CALCULATIONS (higher initial investment)

Deal Information

Exit value

$40,000,000

Time to exit

4

Discount rate

60.00%

Investment amount

$4,200,000

Number of existing shares

1,000,000

Post-Money

X

X

Pre-Money

X

X

Ownership % of VC

X

X

Ownership % of founders

X

X

Number of new shares

X

X

Price per share

X

X

Final wealth of VC

X

X

Final wealth of founders

X

X

PV of VCs wealth

X

PV of founders wealth

X

X

X denotes the field that needs to be answered.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!