Question
A VC fund screened and decided to invest $5 million into a portfolio company. The term sheet is going to be finalized after the valuation
A VC fund screened and decided to invest $5 million into a portfolio company. The term sheet is going to be finalized after the valuation of the portfolio company by VC method. Which of the following is the correct way of finding partial valuation?
Group of answer choices:
Total valuation multiplied by proposed ownership percentage.
Company valuation multiplied by final ownership percentage
Both A and B are correct.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
