Template for Venture Capital Valuation Model

Company Name Valuation --Venture Capital Method Assumptions Ref Month of IPO 48 A Forecast annualized earnings at IPO 5,927,400.00 $ B P/E ratio at IPO 10 C Investment Round First Second Third Month of Investment 12 0 0 C Investor required IRR 25% 20% 15% D Amount of Investment 2,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ E Required Monthly IRR 2.08% 1.67% 1.25% F Duration of Investment 36 48 48 G Calculations Market Capitalization at IPO 59274000 H First Second Third Firm Value at Time of Investment 30,348,288.00 $ 28,585,069.44 $ 33,890,101.88 $ Required FV for Investor at IPO 3,906,250.00 $ 2,073,600.00 $ 1,749,006.25 $ I Individual Investor's Share 6.59% 3.50% 2.95% J Individual Investor's ROI 1.953125 2.0736 1.74900625 K Individual Investor's IRR 0.25 0.2 0.15 L Investors' Share 13% M Founders' Share 87% N Negotiations First Second Third Individual Investor's Share 33% 0 0 FV for Investor at IPO 19,560,420.00 0 0 Individual Investor's ROI 978% 0 0 Individual Investor's IRR 114% -1 -1 Investors' Share 33% Founders' Share 67%Calculation D/12 A-C B*C H/(1+F)^G E*(1+F)^G I/H I/E (I/E)^(12/G)-1 sum(J) 1-MCompany Name Valuation --Venture Capital Method Years 1 to 5 Assumptions: Investor required IRR 1 A P/E ratio at IPO or acquisition 15 B Initial investment 1000000 C D E F Venture Capital Method Year Net Income MarketıCapitalization income stmt B * E IPO in Year 1 1 211,000.00 $ 3,165,000.00 $ IPO in Year 2 2 400,000.00 $ 6,000,000.00 $ IPO in Year 3 3 800,000.00 $ 12,000,000.00 $ IPO in Year 4 4 1,200,000.00 $ 18,000,000.00 $ IPO in Year 5 5 3,500,000.00 $ 52,500,000.00 $ G H I J K Required Future Value (Investor) Investor'sıShare Investor'sıReturn Investor'sıROI Investor'sıIRR FV(F,D) C /G F * H I /C IRR(I,C,D) 2,000,000.00 $ 63% 2,000,000.00 $ 200% #NUM! 4,000,000.00 $ 67% 4,000,000.00 $ 400% #NUM! 8,000,000.00 $ 67% 8,000,000.00 $ 800% #NUM! 16,000,000.00 $ 89% 16,000,000.00 $ 1600% #NUM! 32,000,000.00 $ 61% 32,000,000.00 $ 3200% #NUM! Negotiation Worksheet Year Investor'sıShare Investor'sıReturn Investor'sıROI Investor'sıIRR 1 25% 791,250.00 $ 79% #NUM! 2 25% 1,500,000.00 $ 150% #NUM! 3 25% 3,000,000.00 $ 300% #NUM! 4 25% 4,500,000.00 $ 450% #NUM! 5 25% 13,125,000.00 $ 1313% #NUM!