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

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A start-up company is seeking $5m for its Series A investment round. The start-up is expected to grow to $200M in sales and $20M in profit by year 7. Comparable firms in the industry are trading for 10x earnings.

What is the implied exit value for VC?

The VC is seeking an ROI of 50%. What are the post-money and pre-money valuations for this start-up?

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Entrepreneurship

ISBN: 9781119563099

5th Edition

Authors: Andrew Zacharakis, William D Bygrave

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Posted Date: May 11, 2024 09:12 AM

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

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To calculate the implied exit value for the venture capitalist VC we can use the PriceEarnings PE ra... View the full answer

Entrepreneurship

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