StartCo runs into some challenges and its development falls behind. The company is finally sold...
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- StartCo runs into some challenges and its development falls behind. The company is finally sold in 8 years, at a valuation of $10 million. You made an investment of $100,000 in StartCo.
- If your $100,000 bought 5.1% of the company, how much is your stake worth when the company sells?
- What rate of return did you make on the deal? (hint: what interest rate makes your money grow from your initial investment to the exit value of your investment, given the eight years that you held the investment?)
- If your $100,000 bought 5.1% of the company, how much is your stake worth when the company sells?
- What rate of return did you make on the deal? (hint: what interest rate makes your money grow from your initial investment to the exit value of your investment, given the eight years that you held the investment?)
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