Question 3. (25 points) The Swedish start-up company Neo Technology develops a database management system. The company is seeking Series A round VC financing to expand the firm. You are advising a VC fund that is considering this investment. You estimate the probability of a successful sale or IPO in five years to be fifty-fifty. The expected retention percentage is 50%. Current revenues for the venture are 2.5 million Swedish Krona (SEK) annually, and you expect them to increase by 50% every year for five years until a successful exit. You believe that this start-up company is most comparable to Oracle (NASDAQ:ORCL), a public firm in the U.S. currently trading at a P/S ratio of about 5.0x. Neo Technology currently has 10 million shares outstanding (on a fully diluted basis), and the VC is offered 2 million new shares for an investment of 5 million SEK. Using the Standard VC Valuation Method, do your recommend an investment? Please show each step of your calculations in order to maximize the probability of partial credit in case of mistakes. Question 3. (25 points) The Swedish start-up company Neo Technology develops a database management system. The company is seeking Series A round VC financing to expand the firm. You are advising a VC fund that is considering this investment. You estimate the probability of a successful sale or IPO in five years to be fifty-fifty. The expected retention percentage is 50%. Current revenues for the venture are 2.5 million Swedish Krona (SEK) annually, and you expect them to increase by 50% every year for five years until a successful exit. You believe that this start-up company is most comparable to Oracle (NASDAQ:ORCL), a public firm in the U.S. currently trading at a P/S ratio of about 5.0x. Neo Technology currently has 10 million shares outstanding (on a fully diluted basis), and the VC is offered 2 million new shares for an investment of 5 million SEK. Using the Standard VC Valuation Method, do your recommend an investment? Please show each step of your calculations in order to maximize the probability of partial credit in case of mistakes