4-Valuation of startup companies can be done objectively by following traditional valuation methods.

True

False

5.

Question 5

Choose the statement that is NOT correct?

The Wiltbank Study indicates that investors expect an IRR of 15% in six years

ROI = Exit Value Post-money valuation

If the average PE ratio of companies similar to your company in the industry in which you will operate is 15X, and your projected after tax earnings in year 5 is $3 million, a reasonable exit valuation for your company in year 5 is $45 million

Post-money valuation = Exit Value ROI