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Standard VC Method. KMJ is considering a $5m Series A investment in NewCo. KMJ proposes a 5m share convertible note structure that will leave NewCo.

Standard VC Method. KMJ is considering a $5m Series A investment in NewCo. KMJ proposes a 5m share convertible note structure that will leave NewCo. with 10m shares O/S post conversion. KMJ estimates a 30% probability for a successful exit, within 5 years. Step 3 determine multiple of money. If Cost of VC money is 15% (rVC), what is M?

6.7

7.6

5.8

5.7

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