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1) What is the pre-money evaluation 2) What is your venture capital firms desired fraction of ownership in the firm? 3) Suppose that the founders

image text in transcribed1) What is the pre-money evaluation

2) What is your venture capital firms desired fraction of ownership in the firm?

3) Suppose that the founders want 150,000 shares. How many shares would your venture capital want?

4) What is the value per share?

Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio: Comparable Companies Ticker Symbol Price/Sales Starbucks SBUX 4.95 Darden Restaurants DRI 2.46 Yum Brands YUM 6.15 McDonald's Corporation MCD 8.37 Stacy's Coffee is asking for an investment of $600,000 from your venture capital firm. Stacy's Coffee expects to have sales of $1,200,000 four years from now. What is your estimate of the terminal value for the company in 4 years? Estimate the terminal value of the company using the sales multiple method. Comparable firms in the same industry have the following Price/Sales ratio: Comparable Companies Ticker Symbol Price/Sales Starbucks SBUX 4.95 Darden Restaurants DRI 2.46 Yum Brands YUM 6.15 McDonald's Corporation MCD 8.37

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