Infinite growth is venture capital fund

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Reference no: EM131859783

Infinite Growth is a venture capital fund that invests in expansion stage opportunities with high growth potential in export markets.

They use the VC method, for which they use a cost of capital of 40%, an exit horizon of 5 years and an EBITDA multiple at exit of 6 times.

A target startup you are analyzing has a current EBITDA of 120,000 euros per year and expected growth of 15% per year during your investment horizon.

You want to determine what percentage share of the target startup you would acquire, if you invest 70,000 euros in this opportunity.

Reference no: EM131859783

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