A YZZisaVertureCapitalfirmthathas2rotndsoffinancingexpectedwiththefollowingspecfications:A RWQ is the intal investor for this project. Net income Year 5 PIEYear 5 Irvestment Year 0 Target Rate of Retum Shares outstanding Year 0 \begin{tabular}{|r|} \hline$3,000.0 \\ \hline 35.0 \\ \hline$2,000.0 \\ \hline 50.0% \\ \hline 1,000.0 \\ \hline \end{tabular} One Financing Round Cash Flow and Valuation 12 lnvestment 13. Value in Year 5 14 PV @ 50% 15 Time 5RWQ ownership target Shares purchased Price per share Pre-money value YZZZ Post-money value YZZ \begin{tabular}{|c|c|} \hline 0 \\ \hline$2,000.0 \\ \hline & \\ \hline$8,227.0 \\ \hline 24.31% \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Target ownership at end Ownership needed by other irvestors Initial ownership needed Net income Year 5 P/EYear 5 33 Investment Year 0 34 lnvestment Year 2 35 Target Rate of Return R1 36 Target Rate of Retum R2 37. Shares outstanding Year 0 \begin{tabular}{|r|} \hline$3,000.0 \\ \hline 350 \\ \hline$2.000.0 \\ \hline$1,500.0 \\ \hline 50.0% \\ \hline 30.0% \\ \hline 1,000.0 \\ \hline \end{tabular} Two Financing Round Cash Flow and Valuation investment Value in Year 5 PV @ 30% Yr 2,3 Years Time 5 ownership to earn target retum PV (ix) 50\%, 5 Year5 Tine 5 RWQ ownershop target Retention ratio Time orWa ownership target Shares purchased Price per share 52. Pre-money value YZZ R1 Post-money value YZZ. R1 Second Round Investor Shares purchased Price per share Pre-money valueYZZ R2 Post-money value YZZRR 59 60 61 Onginal shares. 62 Total shares adjusted 63) Total shares after R1 Total shares after R2 Returns to RWQ investors RWQ 7O FCF 71 IRR (ix 50% 12 Second Round Investor 13 FCF 74 IRR (i) 30\% \begin{tabular}{|l|l|l|l|l|l|l|} Intro & 1. DCF Project & 2. WACC & 3. Comparables & 4. DCF Stock & 5. VC \end{tabular} 53 Post-money value YZZ R1 Second Round Investor Shares purchased Price per-share Pre-money valueyZZ R? Postmoney value YZZ R? Original zhares 62. Total shares-adjusted 63 64 Total shares after R1 65 Total shares after R2 Returns to RWQ Investors RWO FCF IRR a 50% Second Round investor 3) FCF 74 IrR is 30% 5 Entrepreneurs' cash flows (6) FCF 77 IRR (ix) 50% \begin{tabular}{|l|l|l|l|l|l|} \hline 0 & 1 & 2 & 3 & 4 & 5 \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular} A YZZisaVertureCapitalfirmthathas2rotndsoffinancingexpectedwiththefollowingspecfications:A RWQ is the intal investor for this project. Net income Year 5 PIEYear 5 Irvestment Year 0 Target Rate of Retum Shares outstanding Year 0 \begin{tabular}{|r|} \hline$3,000.0 \\ \hline 35.0 \\ \hline$2,000.0 \\ \hline 50.0% \\ \hline 1,000.0 \\ \hline \end{tabular} One Financing Round Cash Flow and Valuation 12 lnvestment 13. Value in Year 5 14 PV @ 50% 15 Time 5RWQ ownership target Shares purchased Price per share Pre-money value YZZZ Post-money value YZZ \begin{tabular}{|c|c|} \hline 0 \\ \hline$2,000.0 \\ \hline & \\ \hline$8,227.0 \\ \hline 24.31% \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Target ownership at end Ownership needed by other irvestors Initial ownership needed Net income Year 5 P/EYear 5 33 Investment Year 0 34 lnvestment Year 2 35 Target Rate of Return R1 36 Target Rate of Retum R2 37. Shares outstanding Year 0 \begin{tabular}{|r|} \hline$3,000.0 \\ \hline 350 \\ \hline$2.000.0 \\ \hline$1,500.0 \\ \hline 50.0% \\ \hline 30.0% \\ \hline 1,000.0 \\ \hline \end{tabular} Two Financing Round Cash Flow and Valuation investment Value in Year 5 PV @ 30% Yr 2,3 Years Time 5 ownership to earn target retum PV (ix) 50\%, 5 Year5 Tine 5 RWQ ownershop target Retention ratio Time orWa ownership target Shares purchased Price per share 52. Pre-money value YZZ R1 Post-money value YZZ. R1 Second Round Investor Shares purchased Price per share Pre-money valueYZZ R2 Post-money value YZZRR 59 60 61 Onginal shares. 62 Total shares adjusted 63) Total shares after R1 Total shares after R2 Returns to RWQ investors RWQ 7O FCF 71 IRR (ix 50% 12 Second Round Investor 13 FCF 74 IRR (i) 30\% \begin{tabular}{|l|l|l|l|l|l|l|} Intro & 1. DCF Project & 2. WACC & 3. Comparables & 4. DCF Stock & 5. VC \end{tabular} 53 Post-money value YZZ R1 Second Round Investor Shares purchased Price per-share Pre-money valueyZZ R? Postmoney value YZZ R? Original zhares 62. Total shares-adjusted 63 64 Total shares after R1 65 Total shares after R2 Returns to RWQ Investors RWO FCF IRR a 50% Second Round investor 3) FCF 74 IrR is 30% 5 Entrepreneurs' cash flows (6) FCF 77 IRR (ix) 50% \begin{tabular}{|l|l|l|l|l|l|} \hline 0 & 1 & 2 & 3 & 4 & 5 \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline & & & & & \\ \hline \end{tabular}