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How much money should you ask from a venture

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Reference no: EM132375631

A venture capital firm wants to invest in your venture called "COMM387.com" that you started 4 years ago. For COMM387.com, the venture capital firm is using a target annual compound rate of return of 35%. You expect to sell COMM387.com for $10 million in 6 years and you own 100,000 shares now.

1. How much money should you ask from a venture capital firm in exchange for 60% ownership stake in your company?

2. What is the share price of COMM387.com at which the venture capital firm will be buying shares in this case?

Reference no: EM132375631

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