[3] Granada Electronics pre-IPO valuation Net income (forecast) Expected years to IPO PE ratio of comparable firms VC's target rate of return Estimated exit value Present value of Cirrus Electronics (*) Venture capitalist investment Post-money value of Cirrus Electronics 5 points] [5 points % of ownership required with pre-money value with post-money value 5 points [5 points (*) Also known as pre-money value [3] Granada Electronics pre-IPO valuation Net income (forecast) Expected years to IPO PE ratio of comparable firms VC's target rate of return Estimated exit value Present value of Cirrus Electronics (*) Venture capitalist investment Post-money value of Cirrus Electronics 5 points] [5 points % of ownership required with pre-money value with post-money value 5 points [5 points (*) Also known as pre-money value