A business believe they will achieve $100m (year 3) venture value with a one time initial $2m in venture financing. Similar business is seeking financing amounting to $10m to achieve comparable results. The founders have organized with 1m(million) shares and willing to grant venture investors a 100% return on their business plan projections.
Question: what percent of ownership must be sold to grant the 100 percent three year return ?
Question: what percent of ownership must be sold to grant the 100 percent three year return ?