To obtain the percent ownership to be sold in order to expect to provide the venture investor's target return, one must consider the cash investment today and the cash return at exit __________ by the venture investor's target return, then __________ today's cash investment by the venture's NPV.

Question

Quizplus · Accepted Answer

To determine the percent ownership to be sold in order to provide the venture investor's target return, we need to discount the cash return at exit by the venture investor's target return and then divide it by today's cash investment discounted by the venture's NPV.

To Obtain the Percent Ownership to Be Sold in Order