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(i) Apex Venture Partners, a VC firm, is planning to invest $7 million today in a startup entrepreneurial firm, Russel Holdings. The VC expects the
(i) Apex Venture Partners, a VC firm, is planning to invest $7 million today in a startup entrepreneurial firm, Russel Holdings. The VC expects the firm to have an exit (IPO) valuation of $300 million in four years and has a discount rate of 30%. The number of shares currently outstanding in Russel is 3 million shares. Calculate the post and pre-money valuations, the stock ownership required by the VC, the price per share, and the number of shares the VC will get based on this valuation
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