Question: When computing a target return for a potential startup investment, a VC expects an acquisition of a startup in 5 years at $100 million. The
When computing a target return for a potential startup investment, a VC expects an acquisition of a startup in 5 years at $100 million. The VC seeks a target return of 40%/year on its $5 million investment in that startup today. How much ownership would the VC need of the startup at the acquisition in order to earn 50% return
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