A start-up has been approached by a Venture Capital investor, who would like to invest $700,000 into the business. The start-up's CEO is preparing for the term sheet negotiations, and wants to know how much ownership she should be willing to give up to secure an equity investment of $700,000. Projections show that the start-up could be worth $15,000,000 in 8 years, and you suspect that the VC's hurdle rate for an investment of this size and nature would be 25%. How much company ownership should the CEO be willing to give up for the $700,000 investment? Please round to the nearest percentage point (i.e. xx%)

Answer rating: 100% (QA)

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