Question
A VC may invest $2.5M to an EN via multi-staged financing rounds in years 0; 2; 4 for $12M; $1M; $1M and harvest in year
A VC may invest $2.5M to an EN via multi-staged financing rounds in years 0; 2; 4 for $12M; $1M; $1M and harvest in year 5. The EN is assessed to earn $1.5M in year 5, with PER of 25. Assume VC requires target rates of return, 50% for year 0; 30% in year 2 (24 months later), and 20% in year 4 (48 months later) on a project of similar risk. What is the stake for R1 investment from Terminal Value?
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Essential Wholesaling Strategies For Real Estate Success
Authors: Farisg H. Al-farisi
1st Edition
979-8866103171
