As the CEO of a technology start-up venture, you are pitching your software company's seed round to a potential investor, who is a partner at a $450MM AUM (assets under management) VC fund. According to your sales team, you have 208 users this year (assume year 1) with each paying $149.99/mo. for your software-as-a-service (SaaS) product.

Recently, your CFO says your annual expenses are around $275k annually and projected to rise 12.75% each year (year on year increase). Good news is, your sales (units of annual software licenses) will grow by 20% in year 2, and 30% on year 3 and by 45% in year 4 (year on year throughout). More importantly, in year 3 and 4, you are improving the product and can charge customers $299.99 per month.

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

• Your gross burn (in $) for each of the 4 years 
• Your profit margin (in $ and %) for each of the 4 years 
• Assuming your industry average P/E ratio or multiplier, what is your terminal value ($) for year 4 as an exit valuation?        
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Appendix ARR multiplier Market cap Medical equipment 21.5 22B Defense 14.6 14B Retail 10.44 24B Software Energy 11.75 55B 18.72 13B