Question
You are a venture capitalist. - A hi-tech Internet delivery firm is three years old. - It has $20 million in annual revenue now and
You are a venture capitalist.
- A hi-tech Internet delivery firm is three years old.
- It has $20 million in annual revenue now and predicts revenue next year of $80 million. The firm is breakeven in earnings.
- The firm asks you for $5 million in new capital to fund its growth.
- Similar hi-tech firms appear to have an NWC to Sales ratio of 12%.
With $5 MM in extra, will the firm have enough $$ to grow next year?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
