Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

B. Suppose the founder wants to have a venture investor inject $12,000,000 in three rounds of $4,000,000 at time 0, 1 and 2 with time

image text in transcribed
B. Suppose the founder wants to have a venture investor inject $12,000,000 in three rounds of $4,000,000 at time 0, 1 and 2 with time 5 exit value of $240,000,000. If the founder anticipates returns of 75%, 55% and 35% for round 1, 2 and 3, respectively, what percent of ownership is sold during the first round? During the second round? During the third round? What is the founders' year-five ownership percentage

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: John P. Wiedemer

8th Edition

0324142900, 9780324142907

More Books

Students also viewed these Finance questions

Question

Distinguish between a call and a warrant.

Answered: 1 week ago

Question

What are the legally essential elements of a construction contract?

Answered: 1 week ago

Question

Describe the importance of employer branding.

Answered: 1 week ago

Question

Explain corporate sustainability.

Answered: 1 week ago