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 507 users this year (assume year 1) with each paying $150/mo. for your software-as-a-service (SaaS) product. Recently, your CFO says your annual expenses are around $225k annually and projected to rise 13.5% each year (year on year increase). Good news is, your users will experience year-on-year growth of 27% 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 $289 a month. Assuming 4- year projection time-horizon, what is:

• Your gross burn (in $) for year 3 (show as positive value, if -225,000, write as 225000)
• Your profit margin (%) for year 2 (if 52% write 0.52)
• Assuming your industry average P/E ratio or multiplier, what is your terminal value ($) for year 4 as an exit valuation? (If 4,54 MM write out full to nearest dollar, e.g. 4542314)

Appendix

ARR multiplier	Market cap
Medical equipment	21.5
Defense	14.6
Retail	10.44
Software	14.75
Energy	18.72