ILLUSTRATIVE CASE: FINANCIAL INVESTMENT ROUNDS AND EXIT                          Year of      Founder 1 Founder 2 First   ...
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Valuation And Funding Case Study

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Start to finish valuation rounds, percentages and multiples on exit

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Valuation And Funding Case Study

  1. 1. ILLUSTRATIVE CASE: FINANCIAL INVESTMENT ROUNDS AND EXIT Year of Founder 1 Founder 2 First Second VC % Acquiror TOTAL % AMOUNT TOTAL investment % % Round Round % BROUGHT COMPANY Angel % Angel % IN BY VALUE INVESTORStage 1 Start/Co. Y0 50 50 100% Rs. 10 lakh FormationStage 2 Angel/seed Y1 48 48 4 100% Rs. 10 lakhs Rs.2.5 1 croresStage 3 Angel/seed Y2 38.4 38.4 3.2 20 100% Rs. 1 crore Rs.5 crores 2Stage 4 VC Y3 28.8 28.8 2.4 15 25 100% Rs. 5 crores Rs.20 croresStage 5 Exit: Sale to Y6 0 0 0 0 0 100 100% Rs.60 crores Rs.60 crores companyAmount to investor/owner: Rs. Crore 17.28 17.28 1.44 9 15Return as a multiple of investment 345.6 345.6 14.4 9 3 Notes: 1) Returns to investors Angel/seed 1 14.4X in 5 years Angel/seed 2 9X in 4 years VC 3X in 3 years 2) Other aspects which are relevant ESOP impact Tax/legal impact Valuation methodsPrepared for illustration only: Anjana Vivek: beanie@venturebean.com

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