In the first stage of financing of Hotmail, the pioneer internet email service, the VC firm Draper Fisher, Jurvetson (DFJ) provided VC capital in of the first stage according to the following terms: $315,000 in return for 15.75% equity stake. Prior to the VC financing, the entrepreneur had 10,490,272 shares outstanding

d) In order to check the viability of the VCs investment, he wishes to estimate the number of subscribers required in year 5 for supporting the exit valuation in (c) above. Assume that Hotmail will be valued at a revenue multiple of 5X. Internet advertising prices are $5 per CPK (cost per thousand impressions) and the average subscriber checks e-mail once-a-day for 200 days in a year and would be subject to 5 ad impressions per visit. Based on these assumptions, what must be the number of subscribers in year 5 to support your valuation?