Question
A VC may invest $2.5M to an EN that asks that much with no more financing round through year 5. The EN is assessed to
A VC may invest $2.5M to an EN that asks that much with no more financing round through year 5. The EN is assessed to earn $1.5M annually from year 5, with PE Ratio of 25. Assume VC requires a 50% target rate of return on a project of similar risk. What stake % should VC ask now?
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Clarence Dillon A Wall Street Enigma
Authors: Robert C. Perez , Edward F. Willett
1st Edition
1568330480
