2. Imagine a venture capital fund has the following results at the end of the holding periods of the portfolio companies, please calculate the internal rate of return of the portfolio? (Neglect the effect of fees and carried interests and assume no distribution to partners and no new capital) Portfolio Newco 1 Newco 2 Newco 3 Newco 4 Newco 5 Newco 6 Investment $500,000 $350,000 $800,000 $500,000 $670,000 $750,000 Stake 20% 10% 15% 25% 17% 12.5% Holding Period 3 years 5 years 5 years 4 years 3 years 5X Exit Valuation 1X 2x 0 11x 0 0 (Hint: consider the cash flows for the VC fund in a timeline)