4. Lincoln VC is considering a Series A investment of $4M in NewStage Biopharmaceuticals for 5M shares of common stock. Current stock outstanding is 20M shares. Lincoln VC estimates a $1B exit in 10 years. Use the VC method of valuation and a 50% discount rate. Should Lincoln invest? 5. Taft VC is considering a Series A investment of $2.5M in Last Stage Pharma. Taft has a 5X required multiple of money. Current stock outstanding is 25M. Lincoln will invest for 30% ownership in the company and expects to exit their investment in 10 years. What is minimum exit value such that Lincoln would invest? 6. You are the founder of New Phone Inc. and you expect to sell your company for an estimated $25M in 4 years. To make it to exit though, you need a series A investment of $3 million. Assuming no future dilution (i.e., the company does not need to raise additional money before exit, therefore no need to issue additional shares) and a target return of 50% for your Series A investors, should VCs invest in your firm? What ownership percentage will you have to give up? (Use the VC Method)