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A start - up company is seeking $ 5 m for its Series A investment round. The start - up is expected to grow to

A start

-

up company is seeking $

5

m for its Series A investment round. The start

-

up is expected to grow to $

100

M in sales and $

10

M in profit by year

5 .

Comparable firms in the industry are trading for

12

x earnings.

.

What is the implied exit value for VC

?

.

If the VC anticipated ROI is

25 %,

what is the post

-

money and pre

-

money valuations?

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