You are an early-stage venture capitalist conducting due diligence on a biotech start-up. You are willing to contribute $1,500,000 in the first round of financing, and you target a final exit multiple of 12 invested capital, which estimate will happen in ten years. At that time, you estimate the firm will sell for $80,000,000. You expect an additional round of financing in four years in which you will not participate that will dilute your ownership share by 40%. What is the expected internal rate of return for this investment?

Multiple Choice

10.00%

28.21%

18.40%

12.00%

34.70%