Level 2 Alternative note page 110 question 32 financing, discount, believe, question, regarding

多串君

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

Please advise, thanks!

adjani.zhang

in three years 是三年后，至sale out 时剩下1年

多串君

in three years 是三年后，至sale out 时剩下1年
adjani.zhang 发表于 2014-4-22 11:50

谢谢你！总觉得in 3 years 是在三年内的意思