What is the minimum stake of su

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VV Ventures is a VC firm that is considering an investment in Start-Up, Inc (SU). VV is projecting SU's annual sales to grow from the current level of $8,000,000 to $52,000,000 over the next 3 years. If SU's publicly-traded peers are trading at 8X sales, what is the minimum stake of SU that VV should request in exchange for $10 million, assuming that VV anticipates dilution of 20% in the next round of VC funding and an additional 15% at the IPO (which is anticipated in 3 years)? (Note: VV feels that the appropriate discount rate is 70%)

A 15.63%

B 16.30%

C 18.38%

D 21.56%

E I do not wish to answer this questionI do not wish to answer this question

F 11.81%

Reference no: EM133111623

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