Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Raising capital is going to be critical for your company, Widget Inc, and you want to get the best possible investor right from the start,

image text in transcribed

Raising capital is going to be critical for your company, Widget Inc, and you want to get the best possible investor right from the start, since you believe you will only need the single round. The plan is to grow for 4 years, the exit via acquisition. The company expects to exit at a valuation of $77 million The company is requesting an investment from the VC of $1,500,000.00 The investors estimate the risk of the firm will require an IRR of 50% What percentage of Widget Inc. would the VC demand for the A Round? Post your answer in the form of a percentage, but no "%" sign. Example: 38.467% would be posted as 38.47

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

Fundamentals Of Investments

Authors: Bradford Jordan, Thomas Miller

4th Edition

0073314978, 9780073314976

More Books

Students also viewed these Finance questions

Question

What other publications/presentations does the person have?

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago

Question

Define self-esteem and discuss its impact on your life.

Answered: 1 week ago

Question

Discuss how selfesteem is developed.

Answered: 1 week ago