Question
you are a venture capitalist and now have 2 start-up companies, Acme and Omega, as your finalists for funding. In your opinion, both companies have
you are a venture capitalist and now have 2 start-up companies, Acme and Omega, as your finalists for funding. In your opinion, both companies have good potential to succeed in their respective markets. Assuming that you will invest in just one and each of them requires the same initial investment and needs no further financing before exit. The only difference is that you expect Acme to allow you to exit in 4 years time at an exit multiple of 10X, while Omega in 6 years at 11X. Please give your intuitive opinions as to which one would be your preference and explain why.
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