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An investor offers you $836,415 in exchange for shares of your start-up company. The investor demands an annual rate of return of 69%, and expect
An investor offers you $836,415 in exchange for shares of your start-up company. The investor demands an annual rate of return of 69%, and expect that your IPO will be in 6 years. At that time you expect your firm to have annual income of around $1,895,432 dollars. A similar firm was recently acquired for $18,871,277 dollars. At the time of acquisition, their income was $1,796,825 million dollars per year.
What percentage of your equity should you give to the investor?
Enter your answer as a percentage, without decimals. For example, if your answer is 0.76543, that's 76.543%, which rounds to 77%.
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