Suppose that a VC investor Owl invests in a portfolio company Newco. Owl draws an exit diagram as shown in the following Exhibit.

What is the portfolio of options corresponding to this exhibit?

If the exit value of the portfolio company is 80, how much will Owl take? (Questions 11 & 12)

(Answer the next 2 questions) Suppose that a VC investor Owl invests in a portfolio company Newco. Owl draws an exit diagram as shown in the following Exhibit. 20 Proceeds (SW) -11. What is the portfolio of options corresponding to this exhibit? A. C(20)-C(10) C (40) B. C (40) C (20) C (40) C. C(20) C(40) C (10) D. C (10)-C(20) C (40) .12. If the exit value of the portfolio company is 80, how much will owl take? A. 40 B. 30 C. 20 D. 10 (4 points) .13. Suppose EBV is considering a $5M Series A investment in Newco. EBV proposes to structure the investment as 5M shares of CP. The employees of Newco have claims on 15M shares of common stock. Following the Series A investment, Newco will have 15M on shares outstanding, with another 5M shares on conversion of the Series A. The $100M EBV fund has annual fees of2 percent for each of its 10 years of life and earns 20 percent carried interest on all profits with committed capital as base. Expected GVM is 2.5 and GP% 10%... Use VCV tools. (a) Compute the LP cost for this investment. (b) Solve for the LP valuation equation for this investment. (c) Suppose that total valuation is $30M. What is the LP valuation? (d) Find the breakeven valuation for the investment under base-case assumptions