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Venture is thinking of a $6 MILLION convertible preferred investment in a startup, structured as 5 million shares. The founders of the startup hold 10

Venture is thinking of a $6 MILLION convertible preferred investment in a startup, structured as 5 million shares. The founders of the startup hold 10 million common shares. There's a 30% probability of an IPO in 5 years, with an estimated exit value of $300 million. Uses 15% cost of capital , and its expected retention is 50%.

Should Venture invest in the startup?

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