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A is a VC He is considering investing in B enterprises. A believes that if he invests 3 million dollars, B enterprises will have 10
A is a VC He is considering investing in B enterprises. A believes that if he invests 3 million dollars, B enterprises will have 10 million dollars in EBITDA in 5 years. A also believes that the correct V/EBITDA ratio will be 5 to 1 in five years. A requires a 50% hoped for return per annum for such a risky investment. What is the post-money valuation, and what is the pre-money valuation of the THE B ENTERPRISES?
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