Hi, questions regarding question 32:
A company's founders believe that their company can be sold for $60 million in 4 years. The company needs $6 million in capital now and $3M in THREE YEARS. The entrepreneurs want to hold 1M shares. The venture capital firm uses a discount rate of 50% over all 4 years.
What's the POST at the time of second-round financing?
The answer is 60/(1+0.5)=40.
But my understanding of "6M now and 3M in 3 years" is INV1=6M, N1=1, INV2=3M and N2=3(in three years). So POST2=60/(1+0.5)^3=17.78M
