Mesa Blanca decides to invest $5 million in Action Technologies. Expected exit valuation is $125 million and time to exit is 5 years. Mesa Blanca wants a 50% / year return and expects future dilution of 60%.

What might lead Mesa Blanca to expect future dilution of 60%?

What would the pre and post money valuation, and % ownership Mesa Blanca require at the time of their investment?

What does this analysis suggest about Action Technologies?