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for question 4, you are making assumption but that is exactly what is asked to calculate. What share of the company will SaaS Capital need
for question 4, you are making assumption but that is exactly what is asked to calculate. What share of the company will SaaS Capital need to own in January 2024 if her annual required rate of return is 50% and Samantha anticipates an exit in December 2028 of $150 million? What is the implied pre- and post-money valuation if she invests in those terms? we need to calculate exactly the shares and we can't make assumptions. Required Ownership=0.50$150 million/$150 million=0.50 Calculate New Shares: New Shares=Required OwnershipTotal Shares Outstanding/1-Required Ownership Let's assume the total shares outstanding is not provided, but for this example, let's use a hypothetical value of 10 million shares: New Shares=0.5010 million/1-0.50=5 million Calculate Implied Pre-Money Valuation: Implied Pre-Money Valuation=Total Shares OutstandingShare Price/1+Required Ownership Again, assuming a hypothetical share price of $10: Implied Pre-Money Valuation=10 million$10/1+0.50=$66.67 million Explanation: We calculated Required Ownership, New Shares and Implied Pre-Money Valuation in this step
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