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XYZ Inc. is seeking an investment of $60,000 from your venture capital firm. After extensive economic analysis, you estimate the exit value of the company
XYZ Inc. is seeking an investment of $60,000 from your venture capital firm. After extensive economic analysis, you estimate the exit value of the company will be $423,000 5 years from now. Because of the risk, you will only invest if you can generate of the return of 10% per year on your investment.
The founders want to have 36,000 shares of the company. How many shares of the company will your venture-capital fund ask for?
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