Ask Experts Questions for FREE Help !
Ask
    sss222's Avatar
    sss222 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 6, 2010, 11:11 PM
    venture capital valuation method
    The VC called MIT is considering a $5M first round investment in ABC company. MIT proposed to invest 5M convertible preferred stock. The founder of ABC currently holding 10M common stock. Following the first investment ABC will have 10M outstanding common shares. Successful exit in 5 years with multile exit 10x sales. The cost of capital of MIT is 25%.
    Calculated the expected sales in year 5, (use venture capital valuation method

    Please help.
    BizBlogBuzz's Avatar
    BizBlogBuzz Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Nov 28, 2011, 12:05 PM
    10 * (1.25)^5 div 10 = sales in final year
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Student Venture Capital Loan from 1992 [ 1 Answers ]

I pulled my credit report recently after trying to secure an auto loan and found a collection agency having a file on me. After having the credit reporting companies doing investigations on this, I have been contacted by the collection agency in regards to a Student Venture Capital loan in Ontario...

View more questions Search