John Thompson, CEO of NewVenture,Inc. seeks to raise $5 million in equity for his early stage venture in January 2024. NewVenture is a subscription-based software company that has experienced 75% revenue growth over the last year. The company generated $2.5 million of revenue in 2023, with an operating loss pf $450,000. Thompson projects that NewVenture will achieve $30 million in revenue by 2028 (with a constant growth rate in the next 5 years), followed by 5 years of 35% revenue growth (2029-2033), and 3% growth thereafter (2034 and onwards). He also estimates that company will remain unprofitable until 2028, with EBIT margins of -10% on average over the next 5 years (2024-2028), growing over time to an average of 5% in years 6-10 (2029-2033), and 10% thereafter (2034 and onwards).

4. 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? can you show the formulas I need to use and also put the values we need to use in the formulas?