John, the partner of J&L responsible for the analysis, was trying to prepare some numbers for...

 

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John, the partner of J&L responsible for the analysis, was trying to prepare some numbers for a call. What might the value of CryptoSoft be at the time of J&L's exit? What percentage of CryptoSoft's capital should J&L request? J&L's hurdle rate for such projects was 40 per cent annually. How many shares would the VC fund be getting? How much would they pay per share? 2: Following J&L's policy, they would not be investing in the follow-on round of financing. The analyst was reviewing the numbers to make sure that J&L would be the owners of a suitable percentage of CryptoSoft stock at the time of exit, so that they reach their planned IRR of 40 percent; and this was a serious matter for John and his partners. How many shares should J&L ask for in respect of the two million invested in the first round? Moreover, what would change in your analysis when the exit is an IPO or trade sale exit (no calculations needed; just provide a discussion)? CRYPTOSOFT CASE John, the partner of J&L responsible for the analysis, was trying to prepare some numbers for a call. What might the value of CryptoSoft be at the time of J&L's exit? What percentage of CryptoSoft's capital should J&L request? J&L's hurdle rate for such projects was 40 per cent annually. How many shares would the VC fund be getting? How much would they pay per share? 2: Following J&L's policy, they would not be investing in the follow-on round of financing. The analyst was reviewing the numbers to make sure that J&L would be the owners of a suitable percentage of CryptoSoft stock at the time of exit, so that they reach their planned IRR of 40 percent; and this was a serious matter for John and his partners. How many shares should J&L ask for in respect of the two million invested in the first round? Moreover, what would change in your analysis when the exit is an IPO or trade sale exit (no calculations needed; just provide a discussion)? CRYPTOSOFT CASE