Question

VC Method	CALCULATIONS	Deal Information
Exit value		$40,000,000
Time to exit		4
Discount rate		60.00%
Investment amount		$4,000,000
Number of existing shares		1,000,000
Post-Money	X	X
Pre-Money	X	X
Ownership % of VC	X	X
Ownership % of founders	X	X
Number of new shares	X	X
Price per share	X	X
Final wealth of VC	X	X
Final wealth of founders	X	X
PV of VC’s wealth		X
PV of founders’ wealth	X	X
VC Method	CALCULATIONS (higher initial investment)	Deal Information
Exit value		$40,000,000
Time to exit		4
Discount rate		60.00%
Investment amount		$4,200,000
Number of existing shares		1,000,000
Post-Money	X	X
Pre-Money	X	X
Ownership % of VC	X	X
Ownership % of founders	X	X
Number of new shares	X	X
Price per share	X	X
Final wealth of VC	X	X
Final wealth of founders	X	X
PV of VC’s wealth		X
PV of founders’ wealth	X	X

X denotes the field that needs to be answered.

Answer 1

VC Method	CALCULATIONS	Deal Information
Exit value		40000000
Time to exit		4
Discount rate		60.00%
Investment amount		4000000
Number of existing shares		1000000
Post-Money	6103515.63	X
Pre-Money	2103515.63	X
Ownership % of VC	66%	X
Ownership % of founders	34%	X
Number of new shares	1901578	X
Price per share	3.21	X
Final wealth of VC	26214400	X
Final wealth of founders	13785600	X
PV of VC’s wealth	4000000	X
PV of founders’ wealth	2103515.63	X
VC Method	CALCULATIONS (higher initial investment)	Deal Information
Exit value		40000000
Time to exit		4
Discount rate		60.00%
Investment amount		4200000
Number of existing shares		1000000
Post-Money	6103515.63	X
Pre-Money	1903515.63	X
Ownership % of VC	69%	X
Ownership % of founders	31%	X
Number of new shares	2206444	X
Price per share	2.77	X
Final wealth of VC	27525120	X
Final wealth of founders	12474880	X
PV of VC’s wealth	4200000	X
PV of founders’ wealth	1903515.63	X