1.

The exit value of portfolio firm is $70M with 30% probability of failure. The target multiple for a VC is 7. If VC is expected to own 10% of the portfolio firm at exit, what is the partial valuation to VC today?

Group of answer choices

$1M

$2M

$3M

$4M

2.

True, False, Uncertain: For first round VCs, using DCF methodology to estimate IPO exit valuation of a portfolio firm, it must consider all expected cash flow estimates starting from the time of its investment.

Group of answer choices

True

False