Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your startup company, Tables'N'Chairs, is considering taking on VC funding, and believe your company would perform as follows: - Without outside financing, the company could

image text in transcribed

Your startup company, Tables'N'Chairs, is considering taking on VC funding, and believe your company would perform as follows: - Without outside financing, the company could grow to $20 million in sales in 5 years, and be sold for $20 million If instead you take on VC, you believe the company can grow to $55 million in Revenue in 7 years, and be sold for 1.5 times revenue Prior to the 20% Option Pool, you own 20% of the business, and your co-founders each own 40% - However, following the creation of the Option Pool, with 2 rounds of VC you will give up 31% for the A round and 24% for the B What is your individual wealth at the Exit IF you choose to take the VC route? Post your answer per instructions, no $, no commas. For example, $1,234,567.893 would be posted as 1234567.89 Your startup company, Tables'N'Chairs, is considering taking on VC funding, and believe your company would perform as follows: - Without outside financing, the company could grow to $20 million in sales in 5 years, and be sold for $20 million If instead you take on VC, you believe the company can grow to $55 million in Revenue in 7 years, and be sold for 1.5 times revenue Prior to the 20% Option Pool, you own 20% of the business, and your co-founders each own 40% - However, following the creation of the Option Pool, with 2 rounds of VC you will give up 31% for the A round and 24% for the B What is your individual wealth at the Exit IF you choose to take the VC route? Post your answer per instructions, no $, no commas. For example, $1,234,567.893 would be posted as 1234567.89

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations In Personal Finance

Authors: Dave Ramsey

College Edition

1936948001, 978-1936948000

More Books

Students also viewed these Finance questions

Question

Solve the equation. Check your answers. 3x + 7 = 3x + 5

Answered: 1 week ago