Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jest Keep Movin (JKM) is a SEED STAGE web-oriented entertainment company which owns important intellectual property. JKMs founders, all technology experts in the relevant field,

Jest Keep Movin (JKM) is a SEED STAGE web-oriented entertainment company which owns important intellectual property. JKMs founders, all technology experts in the relevant field, are anticipating accumulation of a dot-com fortune. They believe their unique intellectual property and industry expertise will drive the company to a $ 5,000,000 Year 3 valuation with a one-time initial (Year 0today) $200,000 investment in angel financing. In contrast, similar (comparable) dot-comers in JKMs niche have required MULTI-STAGE financing amounting of $1,000,000 to achieve comparable multiples. The founders own 100,000 shares and are so confident in their business plan that they are willing to grant the angels a 100% annualized return on the start-up seed money $ 200,000 investment. B. What percent ownership does this valuation model indicate that the angels will receive TODAY for their $200,000 investment?

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

Step: 3

blur-text-image

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

A Smart Kids Guide To Personal Finance How To Earn Money

Authors: Ryan Randolph

1st Edition

1477708235, 9781477708231

More Books

Students also viewed these Finance questions

Question

For the joint probability distribution f(x,y) = k/y, where 0

Answered: 1 week ago