Ignore the distinction between pre and post money vakuation for all questions $.$

Question $3$

Suppose you are a potential investor and are unsatisfied with the valuation from Question $2$ because you feel the growth pattern at Series B is much different than Instagram's. Instead, you want to focus on the exit$/$terminal value of the company. You note that Facebook acquired Instagram for $$1\mathrm{.}01B,$ when they still had $40$ million users. Assume that VSCO makes approximately the same amount of revenue per user as Instagram, but because it is a niche product, they will cap out at $35$ million users.

A$.$ Provide an exit valuation for VSCO.

B$.$ Given this exit value, compute the appropriate range for what the Series B valuation should be$.($Hint: Series B investors will only be interested if they can secure a $6-8x$ return on their investment$)$

D$.$ Again assuming the company is only willing to sell $15\%$ of their company in this round, how much money should be "raised"?

Question $4.$

The fact that VSCO will cap out at $35$ million users indicates that most of their growth is over. As such, it may be appropriate instead to use the traditional VC method in pricing the exit$/$terminal value. Using the details in question $1,$ and assuming a $\frac{P}{E}$ ratio of $45$ :

A$.$ What is the terminal value of VSCO?

B$.$ Given this exit value, compute the appropriate range for what the Series B valuation should be$.$

C$.$ Assuming the series B milestones will cost $$2\mathrm{.}2M,$ how much of the company's equity $($what percent$)$ will be sold?