2. As an analyst for a local VC firm, you are asked to value a proposed business investment for a startup that expects to earn $300,000 four years from now at expected exit. Most of the firms you analyze are earning roughly $450,000 at exit and are sold for about $4,000,000. Your firm is considering an investment of $200,000 and demands that investments return 30% annually.

What will this company be worth at exit if your firm makes this investment?

Using the venture capital method, what is the (post-money) present value of this investment opportunity?

How many shares, and at what price, will be issued to your firm? *Note - the founding team currently holds 100,000 shares.