As technology venture CEO, you are presenting your software company's seed round to a potential VC associate, who is a partner at a VC fund. According to your team, you have 508 users this year (year 1) with each paying $149.99/mo. for your software-as-a-service product.

Your CFO says your annual expenses are around $275k annually and projected to rise 14.5% each year (year on year increase). Good news is, your users will experience year-on-year growth of 25% in year 2, and 30% on year 3 and by 35% in the fourth year. More importantly, in year 3 and 4, you are improving the product and can charge customers $249.99 a month.

Assuming 4-year projection time-horizon, what is:

Assuming your industry average P/E ratio or multiplier, what is your terminal value ($) for year 4 as an exit valuation? [if 4.54MM, write out full to nearest dollar, e.g. 4542314]

Enter your responses for the 3 answers above on Sakai Assignments submission box, as well as upload an excel sheet (.XLSX format) of your analyses with formulas.

Appendix

	ARR multiplier	Market cap
Medical equipment	21.5	22B
Defense	14.6	14B
Retail	10.44	24B
Software	13.75	45B
Energy	18.72	13B